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EV reimbursement concerns deter staff from company car schemes, research finds

47% of employees had either declined or avoided joining a company EV scheme due to concerns over reimbursement.

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Concerns over mileage reimbursement are becoming a significant barrier to workplace electric vehicle adoption, with almost half of employees avoiding company EV schemes because they fear they will not be properly reimbursed for charging costs, according to research from The Electric Car Scheme.

The research found that 47% of employees had either declined or avoided joining a company EV scheme due to concerns over reimbursement for charging and other vehicle-related costs.

At the same time, 96% of fleet managers said they had received complaints from employees about EV mileage reimbursement, despite 98% of organisations reviewing their reimbursement policies within the past 12 months.

The findings suggest uncertainty around reimbursement processes is undermining employer efforts to encourage electric vehicle uptake as part of wider sustainability strategies.

The Electric Car Scheme said employees are often required to pay charging costs upfront before reclaiming them, creating frustration and reducing confidence in company EV schemes.

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The company added that new technologies are helping simplify reimbursement processes.

Its Charge Scheme launched Reimburse, which uses HMRC guidance alongside public and home charging data to calculate reimbursement costs more accurately, helping ensure employees are not left out of pocket.

The research also highlighted a disconnect between organisations’ sustainability ambitions and employees’ experiences.

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While environmental, social and governance (ESG) commitments are among the main reasons businesses review reimbursement policies, many employees still believe current processes do not accurately reflect the true cost of driving an electric vehicle for work.

Thom Groot, CEO of The Electric Car Scheme, said: “Employers have invested heavily in making electric vehicles more accessible, but the experience cannot stop once an employee receives the keys.

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“If drivers are worried about being left out of pocket every time they charge, it creates uncertainty that can undermine confidence in EV schemes.”

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“The transition to electric vehicles depends on making the entire process simple and transparent.

“Employees should not have to calculate charging costs, or worry whether they will be reimbursed correctly.

“Businesses that get reimbursement right will find it much easier to encourage EV adoption and achieve their sustainability goals.”