Employment: Taxation
The question
To ask the Chancellor of the Exchequer, wow many employees in the United Kingdom take part in a salary sacrifice scheme in the (a) public and (b) private sectors.
Answered by Torsten Bell
Salary sacrifice arrangement can cover multiple non-cash benefits, including cars, pensions, bicycles and workplace nurseries.
HMRC does not hold administrative data on the number of employers offering and employees using salary sacrifice schemes. However, estimates based on other information are held.
Pension contributions
HMRC analysis of the Annual Survey of Hours and Earnings (ASHE) suggests that around 7.7 million employees made salary sacrifice pension contributions in 2024.
Cycle to Work scheme
HMRC’s non-structural tax relief statistics publication sets out the estimated number of participants in the cycle to work scheme (link below).
Non-structural tax reliefs - GOV.UK
It is assumed that most would use the scheme via salary sacrifice given the tax savings.
Verbatim has judged this answer against the question that was actually asked — answered, partly answered, or evaded. Sign in to see the verdict →