Octopus EV secures £550 million for salary sacrifice scheme

Octopus Electric Vehicles (Octopus EV) has agreed to a £550 million debt securitisation facility from Lloyds Bank to fund electric vehicles. This brings the total funding secured by Octopus EV to £1.2 billion.

Octopus EV says the funds now secured will “play a pivotal role” in financing its salary sacrifice programme that was introduced in 2021. The Electric Dreams scheme offers a ‘salary sacrifice’ system, similar to UK’s cycle-to-work scheme that allows employees to make tax-free payments for a new EV from their salary. In return, each employee benefits from a fully insured and maintained EV as well as a discounted energy tariff and a home charger.

The electric vehicle wing of the UK clean energy company says that its salary sacrifice scheme enables drivers to save 30-40% each month on a new electric vehicle. The full-service electric car package offered by Octopus is also being made available to drivers outside of the salary sacrifice scheme.

Commenting on the finance deal, Transport Secretary Mark Harper noted: “As more electric vehicles become available for consumers, private sector innovation plays an important role on the road to zero-emission vehicles.” He greeted the financing deal, explaining, “That’s why it’s fantastic to see Octopus EV expand their flagship salary sacrifice scheme to help drivers with the upfront costs and easily make the change.”

According to Octopus, the scheme has created more than 300 new green jobs at the company’s offices in London, Weybridge, Brighton and Manchester.

Octopus Energy recently launched its EV services in Texas, USA, where Chris George, Director of U.S. Octopus Electric Vehicles noted, “Interest in electric vehicles is at an all-time high. With Texas as the third-largest market for EVs, and a global leader in energy, we will be positioned to help customers realize vehicle and energy savings all on one bill.”

The all-in-one EV service appears to be doing well for Octopus. “We’ve seen that consumers are looking for experts that can offer the full EV package to guide them through their journey,” said Fiona Howarth, CEO of Octopus Electric Vehicles.



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