13 Best Employee Benefits for UK Teams: Platforms & Providers

There's no single "best" employee benefit. The right mix depends on your team's priorities, whether that's financial wellbeing, work-life balance, or sustainability.

That said, some benefits consistently deliver stronger results for recruitment, retention, and employee satisfaction than others.

This guide explores 13 of the best employee benefits in the UK for 2025 and 2026. We'll compare benefit types, review leading providers and platforms, and show you how to choose the right mix for your business.

Whether you're building your first benefits package or modernizing an existing one, you'll leave with a clear understanding of which perks deliver the most value for both employees and employers.

What employee benefits do UK teams value most?

Today's workforce values benefits that meaningfully improve their financial wellbeing, health, and work-life balance over superficial perks. 

Recent research from Paydata shows that healthcare and pension benefits are the most valued by UK employees in 2024, with 21% highlighting that healthcare plans deliver the most value and 20% choosing pensions. Financial support during the cost-of-living crisis has become particularly important, with salary sacrifice schemes offering tangible savings that employees genuinely appreciate.

The shift away from "office perks" is clear. Ping pong tables and free snacks no longer cut it when employees are weighing job offers or considering whether to stay with their current employer. 

Flexible working has emerged as particularly important, with 90% of employees who were offered it saying flexibility was the most important driver of their wellbeing. In fact, the majority of UK workers now value flexible working more than a pay rise, with nearly 50% saying they would reject a 15% raise if it meant giving up a position that offered more flexibility.

What employees value varies by demographics:

• Younger employees (Gen Z and Millennials) prioritize sustainability initiatives, mental health support, and learning opportunities
• Parents and caregivers value childcare vouchers, flexible working, and enhanced parental leave
• Employees approaching retirement focus on pension enhancements and health insurance
• Remote and hybrid workers appreciate home office allowances and flexible benefits they can actually use

The best benefits are those that address real needs across your workforce. Financial savings, health support, and flexibility consistently deliver the highest satisfaction and retention impact.

This is why the benefits in our list focus on tangible value rather than trendy add-ons that look good in recruitment ads but don't meaningfully improve employee lives. 

That’s not to say you can’t set up a pool table. Just don’t expect it to attract or retain your best performers.

How to choose the right benefits for your team

Choosing your employee benefits shouldn’t come down to copying what other companies offer. They should be carefully considered based on what your employees need, what you can afford, and what will actually drive talent attraction and retention.

The best benefits deliver high perceived value to employees while remaining cost-effective for employers. Salary sacrifice schemes, for example, offer significant savings to employees while often reducing National Insurance costs for businesses.

Key criteria to consider when evaluating benefits:

• Cost to employer vs. perceived value to employee - Thoughtfully crafted benefits create mutual value, with employees experiencing greater peace of mind while employers enjoy reduced absences and lower turnover
• Ease of rollout - Benefits that are complicated to administer often see lower uptake, wasting your investment
• Provider support - Strong provider support ensures smooth implementation and ongoing engagement
• Long-term impact - The best benefits improve culture, retention, and recruitment over time, not just in the short term

Tailor benefits to your business

Company size, budget, and employee demographics all influence which benefits will be most effective. A tech startup with predominantly younger employees will prioritize different benefits than a manufacturing company with an ageing workforce.

Using employee surveys or feedback is the most reliable way to understand what your team actually values. Keep surveys anonymous to encourage honest feedback, and make them accessible through platforms employees are comfortable with.

Here's a concerning stat: 73% of employers don't measure the engagement rate of their benefits, which means many are investing in perks their teams don't use or value. Regular feedback prevents this waste.

Future-focused benefits attract talent

Modern, forward-thinking benefits signal to candidates that your company values innovation and sustainability. This is particularly important for attracting younger talent.

EV salary sacrifice schemes, for instance, offer employees savings of 30-60% compared to personal leasing, while demonstrating your commitment to sustainability. These schemes cost nothing to set up and actually reduce employer National Insurance contributions.

Benefits like flexible working arrangements, enhanced parental leave, and sustainability initiatives show candidates you understand what matters to them. 

The best employee benefits in the UK (at a glance)

Before we dive into each benefit in detail, here's a quick overview of the top employee benefits in the UK. This table gives you a snapshot of what each benefit offers, the main drawbacks, and some leading providers to consider.

13 best employee benefits in the UK (and the top provider for each)

Now let's explore each benefit in detail, including why employees value them, what employers need to know, and the leading providers in each category.

1. EV Salary Sacrifice Scheme

An EV salary sacrifice scheme allows employees to lease an electric vehicle through their gross salary before tax and National Insurance deductions. This means they pay significantly less than they would through personal leasing or buying outright.

Employees save between 30-60% compared to personal leasing, making EVs accessible to people who couldn't otherwise afford them. The scheme also includes insurance, maintenance, breakdown cover, and often free charging credits. For employers, these schemes reduce National Insurance contributions and demonstrate a genuine commitment to sustainability without any setup costs.

These schemes are particularly attractive to younger employees who prioritize environmental responsibility. They're also excellent retention tools since employees typically commit to 2-4 year agreements.

Pros: Zero setup cost, reduces employer NI, major employee savings and supports ESG goals.

Cons: Requires minimum salary threshold, long-term commitment, limited to employees who drive

Top EV salary sacrifice provider: loveelectric

loveelectric stands out for offering both new and used EVs, giving employees more affordable options. Employees get comprehensive insurance and maintenance included. The platform is designed for easy administration, and loveelectric handles everything from vehicle sourcing to ongoing support. Plus there’s the Zero Risk Guarantee that protects employers from early termination.

loveelectric also offers an innovative virtual Visa Charge Card that works with any EV salary sacrifice scheme, allowing employees to save up to 60% on charging at home or in public through salary sacrifice. It works with any home energy supplier and provides 100% charger coverage across the UK.

Check if you're eligible or compare the best EV salary sacrifice providers.

2. Private Medical Insurance

Private Medical Insurance (PMI) gives employees access to private healthcare, bypassing NHS waiting lists for consultations, diagnostics, surgery, and aftercare. With NHS waiting lists at record highs, PMI has become one of the most valued benefits in the UK.

Employees get to choose their own consultants, access faster diagnosis and treatment, and often receive care in more comfortable private facilities. For employers, PMI reduces long-term sickness absence and shows a tangible investment in employee health.

The cost varies significantly based on workforce demographics, coverage level, and whether dependents are included. Group policies are more cost-effective than individual plans, typically ranging from £200 to £1,500 per employee annually.

Pros: Reduces absenteeism, highly valued by employees, faster treatment times, tax-deductible for employers

Cons: One of the most expensive benefits, doesn't cover pre-existing conditions, premiums increase with age

Top private health insurance provider: Bupa

Bupa offers comprehensive group health insurance with extensive coverage options, a wide network of specialists and facilities, and additional services like mental health support and virtual GP appointments. Their group policies are scalable for businesses of all sizes.

3. Mental Health & Wellbeing Support

Mental health support typically comes through Employee Assistance Programmes (EAPs), which offer 24/7 confidential counselling, therapy sessions, and practical support for personal or work-related issues. Many programmes now include access to meditation apps, stress management resources, and mental health first aid training.

With stress, depression, and anxiety accounting for 16.4 million lost working days in 2023-24, mental health support has moved from a nice-to-have to an essential benefit. Employees value having confidential, professional support available when they need it, without the stigma or waiting times associated with NHS services.

These programmes are relatively affordable and deliver strong ROI through reduced absenteeism and improved productivity. The challenge is ensuring employees actually know the benefit exists and how to access it.

Pros: Cost-effective, available 24/7, supports whole workforce, reduces stress-related absence, can be included with other insurance policies

Cons: Low uptake without strong communication, employees may be hesitant to use it, difficult to measure direct ROI

Top mental health support provider: Health Assured

Health Assured provides comprehensive EAP services with 24/7 counselling, a mental health app, management support, and crisis intervention. Their service includes both reactive support and proactive wellbeing resources to help prevent issues before they escalate.

4. Enhanced Pension Contributions

While employers are legally required to contribute a minimum of 3% to workplace pensions, 46% of UK companies now offer enhanced contributions above this minimum. Enhanced pension contributions show employees you're invested in their long-term financial security.

Matching employee contributions up to a certain percentage encourages employees to save more for retirement while demonstrating your commitment to their future. This benefit is particularly valued by employees over 35 who are becoming more focused on retirement planning.

Pension contributions are tax-efficient for both parties, and when structured as salary sacrifice, they reduce National Insurance costs for employers. The main challenge is that younger employees often don't prioritize pensions, so the perceived value can be lower for that demographic.

Pros: Tax-efficient, builds long-term loyalty, attracts experienced professionals, reduces employer NI when done via salary sacrifice

Cons: Higher ongoing costs, younger employees may not value it, delayed ROI

Top workplace pension provider: Smart Pension

Smart Pension offers low fees, easy integration with payroll systems, strong investment performance, and excellent educational resources to help employees understand the value of their pension. Their platform is designed for modern businesses with remote or hybrid teams.

5. Flexible Working & Hybrid Options

Flexible working arrangements allow employees to adjust when and where they work, whether through hybrid models, flexitime, compressed hours, or fully remote options. 90% of employees who have flexible working say it's the most important driver of their wellbeing.

This is arguably the highest-impact, lowest-cost benefit you can offer. Flexible working costs nothing to implement and is consistently rated as more valuable than a pay rise by UK employees. Since April 2024, employees have the legal right to request flexible working from day one.

The challenge is maintaining team cohesion, ensuring fair policies across different roles, and building trust. Clear guidelines around core hours, communication expectations, and performance management are essential.

Pros: Zero cost to implement, most highly valued benefit, improves recruitment and retention, increases productivity

Cons: Requires cultural shift and trust, can complicate coordination, not suitable for all roles

Implementing flexible working

Rather than a specific provider, flexible working requires clear policies and the right collaboration tools. Invest in communication platforms like Slack or Microsoft Teams, project management tools, and ensure managers are trained to lead remote or hybrid teams effectively.

6. Gym Memberships & Wellness Allowances

Gym memberships or wellness allowances help employees stay active and healthy. Employers can offer subsidized gym access, corporate memberships at local facilities, or flexible wellness allowances that employees can spend on fitness activities that suit them.

These benefits support both physical and mental health, with regular exercise reducing stress, improving sleep, and boosting overall wellbeing. The cost is relatively modest, typically £10-40 per employee per month for group memberships.

The main challenge is utilization. Many employees sign up but don't regularly use gym memberships, which reduces the ROI. Wellness allowances that cover a broader range of activities (yoga classes, sports equipment, fitness apps) tend to see higher engagement.

Pros: Relatively low cost, supports mental and physical health, easy to implement, reduces absenteeism

Cons: Low utilization without promotion, not valued by all employees, limited appeal to remote workers

Top gym benefit provider: Hussle

Hussle offers flexible gym access across thousands of UK facilities without long-term contracts. Employees can visit different gyms and fitness centers based on what suits their schedule and location, making it ideal for hybrid and remote teams.

7. Cycle to Work Scheme

The Cycle to Work scheme allows employees to get a bike and safety equipment through a salary sacrifice arrangement, saving up to 43% on the cost. After a rental period (typically 12-18 months), employees can purchase the bike at a reduced rate.

This government-backed scheme promotes healthier commuting, reduces carbon emissions, and costs nothing for employers to set up. It's particularly popular in urban areas and appeals strongly to environmentally conscious employees.

The limitation is that it only appeals to employees who can safely cycle to work and have somewhere to store a bike. It's less relevant for fully remote workers or those with long commutes.

Pros: Zero setup cost, tax savings for employees, promotes health and sustainability, easy to administer

Cons: Limited appeal to non-cyclists, geographic and weather limitations, less relevant for remote workers

Top cycle to work provider: Cyclescheme

Cyclescheme is the UK's most popular cycle to work provider, offering access to thousands of retailers, flexible payment terms, and a simple online process. They handle all the administration and provide excellent support for both employers and employees.

8. Life Insurance (Death in Service)

Life Insurance, also called Death in Service, pays out a lump sum (typically 2-4 times annual salary) to an employee's beneficiaries if they die while employed. Both the premiums and the payout are tax-free.

This benefit provides genuine peace of mind for employees with dependents, knowing their family would be financially protected. It's relatively inexpensive compared to other insurance benefits and is often expected in professional roles.

The challenge is that the benefit only feels relevant to employees with dependents. Younger, single employees may not see the value, though it becomes increasingly important as employees start families.

Pros: Tax-free for employer and employee, relatively low cost, provides real security, easy to understand

Cons: Only relevant to employees with dependents, doesn't address immediate needs, payout only on death

Top life insurance provider: Legal & General

Legal & General offers competitive group life insurance with fast claims processing, additional support services for beneficiaries, and options to add terminal illness cover. Their policies are flexible and scale with business growth.

9. Employee Assistance Programme (EAP)

An EAP provides employees and their families with confidential access to counselling, legal advice, financial guidance, and support for personal issues. Services are typically available 24/7 via phone, online chat, or video calls.

EAPs cover a wide range of situations including relationship problems, bereavement, stress, legal issues, and financial concerns. They're often included as part of other insurance policies, making them cost-effective to implement.

The main challenge is awareness. Many employees don't know their company offers an EAP, so regular communication is essential to drive uptake and demonstrate value.

Pros: Comprehensive support, cost-effective, 24/7 availability, confidential, often included with other benefits

Cons: Low awareness and uptake, difficult to measure impact, employees may be hesitant to use it

Top EAP provider: Workplace Options

Workplace Options provides a comprehensive EAP with counselling, legal and financial advice, manager support, and wellbeing resources. Their service includes proactive communication tools to help drive awareness and engagement.

10. Learning & Development Budgets

Learning and development budgets give employees dedicated funds to spend on courses, certifications, conferences, or training that supports their career growth. This shows you're invested in their future and helps build the skills your business needs.

LinkedIn's 2024 Workplace Learning Report shows that learning enhances connection and purpose among employees, making them more engaged and motivated. It's also an effective retention tool since employees who feel they're developing are less likely to look elsewhere.

The challenge is ensuring the learning budget aligns with business needs and that employees actually use it. Clear guidelines around what's covered and regular encouragement from managers helps maximize uptake.

Pros: Builds loyalty, improves skills, shows investment in employees, relatively flexible cost

Cons: Requires administration, potential for low ROI if not strategic, may train employees who then leave

Top L&D platform: Learnerbly

Learnerbly is a curated learning marketplace that gives employees access to books, courses, coaching, conferences, and digital tools. It empowers employees to choose the learning that suits their goals, while giving employers visibility and controls to ensure learning spend aligns with business priorities. You give your people a budget and they can spend it on the best learning resources available without processing receipts for reimbursement.

11. Childcare Support

The government's Tax-Free Childcare scheme provides up to £2,000 per child annually towards childcare costs. Some employers go further by offering childcare vouchers (for legacy users), workplace nurseries, or additional financial support.

Childcare is one of the biggest financial burdens for working parents, and support in this area can be a major factor in retention, particularly for employees with young children. It's especially valued by parents returning from parental leave.

This benefit has limited applicability since it only helps employees with young children, but for those employees, it can be transformational in enabling them to continue working.

Pros: High value for eligible employees, supports diversity and inclusion, aids return from parental leave, government support available

Cons: Only relevant to parents, eligibility requirements, can be complex to administer

Implementing childcare support

Direct employees to the government's Tax-Free Childcare scheme and consider offering enhanced parental leave or flexible working arrangements that make childcare more manageable. Some larger employers partner with nursery providers for preferential rates.

12. Tech Schemes

Tech schemes work similarly to Cycle to Work, allowing employees to get laptops, tablets, phones, and other technology through salary sacrifice. Employees spread the cost over 12 months from their gross salary, saving on tax and National Insurance.

These schemes are particularly valuable for remote and hybrid workers who need quality equipment at home. They're also appealing to younger employees who value having the latest technology.

The benefit is that employees get access to technology they might not be able to afford upfront, while employers face no setup costs and reduce National Insurance contributions.

Pros: Zero setup cost, enables remote working, tax savings for employees, supports productivity

Cons: Only appeals to tech-interested employees, equipment becomes outdated, salary sacrifice commitment required

Top tech scheme provider: Techscheme

Techscheme offers salary sacrifice on a wide range of technology from major retailers, with no credit checks, easy online application, and flexible repayment terms. They handle all administration and compliance.

13. Enhanced Annual Leave

Offering annual leave above the statutory 28 days (including bank holidays) is a simple way to show employees you value their time. Many companies offer 25 days plus bank holidays, with additional days earned through length of service.

Some progressive employers also offer unlimited holiday policies, though these require strong trust and clear expectations to work effectively. Enhanced leave is consistently rated as one of the most desired benefits.

The cost is productivity time, but well-rested employees are more productive, creative, and less likely to burn out. This benefit is universally appreciated across all demographics.

Pros: Universally valued, improves wellbeing, reduces burnout, simple to implement, aids retention

Cons: Lost productivity time, potential for abuse without clear policies, doesn't differentiate you as much as it used to

Implementing enhanced leave

Start with 25 days plus bank holidays as a baseline, then add service-based increments (e.g., one extra day per year of service up to a maximum). Consider offering additional leave for life events like moving house or getting married. Make sure your policies are clear and consistently applied.

How loveelectric fits into your benefits package

Why EV salary sacrifice is the benefit to add in 2026

If you're only adding one new benefit to your package this year, make it an EV salary sacrifice scheme.

Here's why: it ticks every box that matters in 2026. Employees get massive financial savings (30-60% off their dream car) at a time when cost of living is still squeezing budgets. You demonstrate real commitment to sustainability, not just token gestures. And unlike most benefits that cost you money, an EV scheme can be completely cost neutral to your business.

With 48% of UK employees saying they'd feel more motivated working for a company offering green benefits, and younger talent increasingly prioritizing sustainability, an EV scheme positions you as a forward-thinking employer. It's particularly effective for attracting and retaining the under-40s who care deeply about environmental impact.

The beauty of EV salary sacrifice is that it works alongside your existing benefits, not instead of them. It complements health insurance and pension contributions as a core financial benefit, while supporting your wellness initiatives (cleaner air, reduced stress from car ownership) and ESG goals.

📚You may also like: How to reduce Scope 3 emissions and hit ESG targets

Most importantly, the perceived value to employees is enormous. Getting their dream electric vehicle for half the normal cost is transformational for many workers, and it's a benefit they'll use and appreciate every single day.

How the loveelectric scheme works

Setting up loveelectric's EV salary sacrifice scheme is straightforward. There are no setup costs, no complicated administration, and loveelectric handles everything from vehicle sourcing to ongoing support.

Here's how it works for employees:

• Browse new and used EVs on the loveelectric platform
• Choose a vehicle that fits their budget and lifestyle
• The monthly cost is deducted from gross salary before tax and National Insurance
• Everything is included: insurance, maintenance, breakdown cover, and replacement vehicle if needed
• Employees save 30-60% compared to personal leasing or buying

📚You may also like: How to Get a Car on Salary Sacrifice: Step-by-Step Guide

The beauty of loveelectric is the flexibility. By offering used EVs alongside new models, more employees can access the scheme at lower monthly costs. This means better utilization rates and higher satisfaction across your workforce.

Employees can also add loveelectric's Charge Card, which works through salary sacrifice to deliver up to 60% savings on charging at home or in public. It works with any home energy supplier and provides 100% charger coverage across the UK, making EV ownership even more affordable.

For employers, setting up the scheme takes minimal time, and loveelectric handles all ongoing administration, vehicle delivery, and employee queries.

Get the car you want for a price you love with loveelectric

Ready to transform your benefits package with an EV salary sacrifice scheme?

For employers: Set up loveelectric for your team in minutes. No setup costs, minimal admin, maximum impact.

For employees: Want to save 30-60% on your next car? Refer your company to loveelectric and make it happen.

Check your eligibility | Browse available vehicles | Learn about the Charge Card