In the lumi reward benchmark, car allowance is the allowance most often offered, at 46.1% of UK organisations, ahead of shift allowance at 40.4% (n = 267, 2026 H1).
Key findings
- Car allowance is the allowance most often offered, at 46.1% (n = 267), followed by shift allowance at 40.4%.
- "Yes" is the common answer on whether allowances are reviewed regularly as part of reward governance, at 39.6% (n = 250). "Ad hoc / irregular" (34.8%) and "No" (25.6%) are alternatives.
- "Never" is the common answer on consolidating allowances into base pay, at 49.6% (n = 262). Taken together, 50.4% consolidate them at some point (40.5% + 9.9%).
- 34.9% provide company cars as a status or grade-based benefit (n = 261). "No" is the common answer, at 65.1%.
- For business need company cars, "Business need" is the eligibility criterion chosen most often, at 91.4% (n = 233). Role level is chosen by 55.4%.
- "No" is the common answer on operating a flexible benefits platform, at 48.7% (n = 269). "Yes" is the alternative, at 39.8%.
- "No" is the common answer on measuring benefits take-up and using it in design decisions, at 75.6% (n = 266), and on reviewing benefits regularly for relevance and value, at 75.2% (n = 222).
About the data
This paper reports how UK employers answered lumi's questions on allowances, company cars and benefits governance. The lumi reward benchmark covers 269 UK organisations across 14 sectors and five size bands. Data was collected in the 2026 H1 collection window. Each figure gives its base (n): the number of organisations that answered that question. Percentages are rounded to one decimal place, so a distribution can add up to 100.1%. Figures here are national. Sector and size comparisons are available to lumi members. See how lumi works for the method.
The legal context
The allowances an employer pays, its company car policy and the way it governs its benefits are not set by statute.
Which allowances do UK employers pay?
The benchmark asked Which allowances are offered to employees? (n = 267). Organisations could choose more than one.
| Allowance | % of base |
|---|---|
| Car allowance | 46.1% |
| Shift allowance | 40.4% |
| Mobile/phone allowance | 36.7% |
| On-call allowance | 30.3% |
| Travel allowance | 22.8% |
| Homeworking allowance | 16.1% |
| Location / cost-of-living allowance | 13.5% |
| Meal allowance | 10.1% |
| Other | 8.6% |
| None | 5.6% |
Car allowance is chosen most often, then shift allowance and mobile/phone allowance. The list mixes two kinds of payment. Some pay for when or how work is done, such as shifts and on-call. Others cover a cost of the job, such as a car or a phone.
A second question asked Which allowances or premiums are currently paid? (n = 264), with a longer answer list that includes premiums. Acting-up allowance is chosen most often, at 49.2%. Working-time payments include on-call / standby allowance (retainer) at 41.3%, bank holiday premium at 40.5%, shift allowance at 39.8%, night premium at 35.6% and weekend premium at 33.0%. Car allowance is chosen by 39.4% and London weighting / location allowance by 33.7%. Market scarcity allowance is chosen by 12.1% and "None" by 2.3%.
The two questions differ in wording ("offered" and "currently paid") and answer lists, so the same allowance can show different figures in each. Each figure should be read within its own question.
For someone designing reward, each allowance is a separate line of pay with its own rate, eligibility rule and review cycle. Acting-up, location and scarcity allowances adjust pay outside the grade structure without regrading.
How often do UK employers review and consolidate allowances?
Governance was asked as Are allowances reviewed regularly as part of reward governance? (n = 250). "Yes" is the common answer, at 39.6%. "Ad hoc / irregular" (34.8%) and "No" (25.6%) are alternatives. In all, 74.4% review allowances regularly or on an ad hoc basis (39.6% + 34.8%). An allowance set as a flat cash sum does not move with pay awards unless someone reviews it, and the reason for paying it may lapse unnoticed.
The benchmark asked Are allowances differentiated by role level? (n = 244). The common answer is "Some allowances only", at 45.1%. "No" (34.8%) and "Yes" (20.1%) are alternatives. Together, 65.2% differentiate at least some allowances by role level (45.1% + 20.1%). A flat rate treats an allowance as payment for a condition of work. A rate that rises with level treats it as part of a grade's package.
On consolidation, the question was Are allowances consolidated into base pay at any point (e.g., on promotion or contract change)? (n = 262). "Never", at 49.6%, is the common answer. "Sometimes" is the alternative, at 40.5%, and "Always" is rare, at 9.9%. Taken together, 50.4% consolidate allowances into base pay at some point (40.5% + 9.9%). A separate allowance can be withdrawn when its reason ends and, depending on scheme rules, may sit outside pensionable pay. Consolidation removes a line to administer but turns the payment into base pay.
How many UK employers provide company cars?
The benchmark asked Does your organisation provide company cars as a status or grade-based benefit? (n = 261). "No" is the common answer, at 65.1%, and "Yes" the alternative, at 34.9%. A status car goes with the grade, whatever the role's travel.
Choice was asked as Are employees eligible to choose between a status-based company car and a cash allowance? (n = 264). The common answer is "No", at 73.9%, and "Yes" the alternative, at 26.1%. The base is all organisations answering, not only those providing status cars. A car-or-cash choice passes the decision to the employee, and the relative value of the two options becomes a design question.
On vehicle type, the benchmark asked Are low-emission or electric vehicles mandated or prioritised for company cars? (n = 262). "No", at 70.6%, is the common answer, and "Yes" the alternative, at 29.4%. This base, too, is all organisations answering. A mandate or priority ties car policy to environmental commitments and running costs, and narrows the employee's choice.
Business need was asked as What criteria are used to determine eligibility for a business need company car? (n = 233). Organisations could choose more than one.
| Criterion | % of base |
|---|---|
| Business need | 91.4% |
| Role level | 55.4% |
| Other eligibility criteria | 12.9% |
| Performance rating | 7.7% |
"Business need" is chosen most often and role level second. Where role level applies, eligibility also depends on grade, and the line between a business need car and a status car can blur.
Do UK employers offer flexible benefits and test benefits for cost and cover?
The benchmark asked Does your organisation operate a flexible benefits platform (employees can choose/adjust benefits)? (n = 269). "No" is the common answer, at 48.7%. "Yes" is the alternative, at 39.8%, and "In development" is rare, at 11.5%. Together, 51.3% operate a platform or have one in development (39.8% + 11.5%).
A related question asked Do you provide a personalised/flexible benefits allowance employees can allocate by choice? (n = 269). The common answer is "No", at 61.3%. "Limited choice" is the alternative, at 27.1%, and "Personalised allowance" is rare, at 11.5%. Taken together, 38.6% offer some choice over how an allowance is spent (27.1% + 11.5%).
A platform lets employees adjust benefits; an allowance gives them a sum to spend. Either way, take-up, and with it cost, moves from the employer's decision to the employee's.
The benchmark asked Do you use an external benefits broker or adviser? (n = 265). "None", at 43.4%, is the common answer. "Project-based adviser" (32.5%) and "Full-service broker" (24.2%) are alternatives. Together, 56.7% use an external broker or adviser in some form (32.5% + 24.2%).
It also asked How often do you take your main benefits back out to market to test cost and cover? (n = 267).
| Frequency | % of base |
|---|---|
| Never | 33.7% |
| Less often than every 3 years | 32.6% |
| Every 2–3 years | 25.5% |
| Annually | 8.2% |
"Never" is the common answer, at 33.7%. "Less often than every 3 years" is an alternative, at 32.6%, as is "Every 2–3 years", at 25.5%. "Annually" is rare, at 8.2%. Separately, 33.7% retest their main benefits at least every three years (25.5% + 8.2%). That figure matches the "Never" percentage, but it covers a different set of organisations. Regular testing checks price and cover, at the cost of procurement time and possible disruption if a provider changes. Staying put keeps continuity but leaves both untested.
How do UK employers review benefit cost, objectives and take-up?
Review was asked as Are employee benefits reviewed regularly to assess relevance and value? (n = 222). "No", at 75.2%, is the common answer. "Yes – at least annually" is the alternative, at 22.1%, and "Yes – occasionally" is rare, at 2.7%. Taken together, 24.8% review benefits for relevance and value (22.1% + 2.7%).
Cost was asked as Are benefit costs tracked centrally as part of total reward reporting? (n = 269). The common answer is "Yes", at 37.5%. "Partially" (32.7%) and "No" (29.7%) are alternatives. Together, 70.2% track benefit costs centrally at least in part (37.5% + 32.7%).
Objectives were asked as Are your employee benefits linked to defined objectives (e.g., retention, engagement, productivity) and reviewed against them? (n = 268).
| Answer | % of base |
|---|---|
| Objectives not reviewed | 31.3% |
| Objectives reviewed annually | 30.6% |
| No objectives | 25.0% |
| Objectives linked to productivity | 13.1% |
"Objectives not reviewed" is the common answer. "Objectives reviewed annually" and "No objectives" are alternatives, and "Objectives linked to productivity" is rare. The three answers other than "No objectives" all describe objectives of some kind, 75.0% in all (31.3% + 30.6% + 13.1%).
Take-up was asked in two ways. The first was Does the organisation track enrolment and utilisation for key benefits (e.g., pension, private medical, wellbeing benefits)? (n = 245).
| Answer | % of base |
|---|---|
| No | 41.6% |
| Yes – tracked for some benefits | 33.9% |
| In development | 13.5% |
| Yes – tracked for most key benefits | 11.0% |
"No" is the common answer and "Yes – tracked for some benefits" the alternative; the other two are rare. Taken together, 44.9% track enrolment and utilisation for at least some benefits (33.9% + 11.0%).
The second was Do you measure benefits take-up and use it in design decisions? (n = 266). The common answer is "No", at 75.6%. "Occasionally" (14.3%) and "Systematically" (10.2%) are both rare. Together, 24.5% use take-up in design decisions at least occasionally (14.3% + 10.2%). This question asks about using take-up, not only tracking it, and has a different base, so the two sets of figures are not interchangeable.
Together these questions trace a sequence: knowing what benefits cost, who uses them and what they are for. Central cost tracking is the one step where "Yes" is the common answer. Without usage data, a benefit's value to employees is harder to judge. Without stated objectives, there is no fixed test for keeping or withdrawing it.
What the data means for reward decisions
Allowances, company cars and benefits all sit outside base pay, and each involves a choice between simplicity and targeting.
For allowances, the choices are how many separate payments to run, whether rates vary by level, and whether they stay separate or are folded into base pay. Separate allowances can be targeted and withdrawn, but each adds a rate to review and a rule to explain.
For cars, the choice is between providing a vehicle, paying cash or offering both. A fleet gives the employer control over vehicle type, including emissions, but keeps cost and administration in-house. A cash allowance passes the choice to the employee.
For benefits, the answers show a spread of practice on review, cost tracking, objectives and take-up data. Choice through a platform or allowance makes take-up and cost harder to predict without usage data. External advice and periodic testing add scrutiny of price and cover, at the cost of procurement effort.
Questions a head of reward would ask:
- Which allowances do we pay, what is each for, and does that reason still apply?
- When were allowance rates last reviewed, and which vary by role level?
- When, if ever, is an allowance consolidated into base pay, and what does that change for pension?
- Do we provide cars for status, for business need or both, and is a cash alternative offered?
- Do we know what each benefit costs, who uses it and what it is meant to achieve?
- When were our main benefits last tested for cost and cover?
Frequently asked questions
What percentage of UK employers offer a car allowance? In the lumi reward benchmark, 46.1% of UK organisations offer a car allowance (n = 267, 2026 H1). It is the allowance offered most often, ahead of shift allowance at 40.4% and mobile/phone allowance at 36.7%.
Do UK employers review their allowances regularly? In the lumi reward benchmark, 39.6% of UK organisations review allowances regularly as part of reward governance (n = 250, 2026 H1). A further 34.8% review them ad hoc or irregularly and 25.6% do not, so 74.4% review them regularly or on an ad hoc basis (39.6% + 34.8%).
Do UK employers consolidate allowances into base pay? In the lumi reward benchmark, 49.6% of UK organisations never consolidate allowances into base pay (n = 262, 2026 H1). 40.5% do so sometimes and 9.9% always, so 50.4% consolidate at some point (40.5% + 9.9%). The question covers points such as promotion or contract change.
How many UK employers provide company cars as a status benefit? In the lumi reward benchmark, 34.9% of UK organisations provide company cars as a status or grade-based benefit and 65.1% do not (n = 261, 2026 H1). Only 26.1% let employees choose between a status-based company car and a cash allowance (n = 264).
What percentage of UK employers offer a flexible benefits platform? In the lumi reward benchmark, 39.8% of UK organisations operate a flexible benefits platform, 11.5% have one in development and 48.7% do not (n = 269, 2026 H1). Together, 51.3% operate a platform or are building one (39.8% + 11.5%).
Do UK employers measure benefits take-up? In the lumi reward benchmark, 75.6% of UK organisations do not measure benefits take-up and use it in design decisions (n = 266, 2026 H1). 14.3% do so occasionally and 10.2% systematically, 24.5% in all (14.3% + 10.2%).
Notes
- Base, "Not applicable" handling and rounding are as described in "About the data". No question reported here excludes "Not applicable" from its base.
- Three questions are multi-select: which allowances are offered, which allowances or premiums are currently paid, and which criteria determine eligibility for a business need company car. Their percentages can sum to more than 100%.
- Combined figures add the listed percentages of options within one single-select question, with the parts shown. Figures are not combined across questions.
Data appendix
Every question on this page, with its base and full distribution, as a spreadsheet: download the CSV.
All national figures used in this paper, as recorded in the lumi reward benchmark (collection window 2026 H1).
Which allowances are offered to employees?
Base: 267 organisations · more than one answer allowed
| Answer | % of base | Organisations |
|---|---|---|
| Car allowance | 46.1% | 123 |
| Shift allowance | 40.4% | 108 |
| Mobile/phone allowance | 36.7% | 98 |
| On-call allowance | 30.3% | 81 |
| Travel allowance | 22.8% | 61 |
| Homeworking allowance | 16.1% | 43 |
| Location / cost-of-living allowance | 13.5% | 36 |
| Meal allowance | 10.1% | 27 |
| Other | 8.6% | 23 |
| None | 5.6% | 15 |
Are allowances reviewed regularly as part of reward governance?
Base: 250 organisations
| Answer | % of base | Organisations | Prevalence |
|---|---|---|---|
| Yes | 39.6% | 99 | common |
| Ad hoc / irregular | 34.8% | 87 | alternative |
| No | 25.6% | 64 | alternative |
Are allowances differentiated by role level?
Base: 244 organisations
| Answer | % of base | Organisations | Prevalence |
|---|---|---|---|
| Some allowances only | 45.1% | 110 | common |
| No | 34.8% | 85 | alternative |
| Yes | 20.1% | 49 | alternative |
Which allowances or premiums are currently paid?
Base: 264 organisations · more than one answer allowed
| Answer | % of base | Organisations |
|---|---|---|
| Acting-up allowance | 49.2% | 130 |
| On-call / standby allowance (retainer) | 41.3% | 109 |
| Bank holiday premium | 40.5% | 107 |
| Shift allowance | 39.8% | 105 |
| Car allowance | 39.4% | 104 |
| Night premium | 35.6% | 94 |
| London weighting / location allowance | 33.7% | 89 |
| Weekend premium | 33.0% | 87 |
| First aid allowance | 26.1% | 69 |
| Call-out allowance | 23.1% | 61 |
| Travel allowance | 18.6% | 49 |
| Uniform allowance | 16.3% | 43 |
| Market scarcity allowance | 12.1% | 32 |
| Mobile/phone allowance | 12.1% | 32 |
| Meal allowance | 8.3% | 22 |
| Other | 7.2% | 19 |
| Homeworking allowance | 6.1% | 16 |
| Tool allowance | 5.3% | 14 |
| Cost-of-living allowance | 4.9% | 13 |
| None | 2.3% | 6 |
Are allowances consolidated into base pay at any point (e.g., on promotion or contract change)?
Base: 262 organisations
| Answer | % of base | Organisations | Prevalence |
|---|---|---|---|
| Never | 49.6% | 130 | common |
| Sometimes | 40.5% | 106 | alternative |
| Always | 9.9% | 26 | rare |
Does your organisation provide company cars as a status or grade-based benefit?
Base: 261 organisations
| Answer | % of base | Organisations | Prevalence |
|---|---|---|---|
| No | 65.1% | 170 | common |
| Yes | 34.9% | 91 | alternative |
Are employees eligible to choose between a status-based company car and a cash allowance?
Base: 264 organisations
| Answer | % of base | Organisations | Prevalence |
|---|---|---|---|
| No | 73.9% | 195 | common |
| Yes | 26.1% | 69 | alternative |
Are low-emission or electric vehicles mandated or prioritised for company cars?
Base: 262 organisations
| Answer | % of base | Organisations | Prevalence |
|---|---|---|---|
| No | 70.6% | 185 | common |
| Yes | 29.4% | 77 | alternative |
What criteria are used to determine eligibility for a business need company car?
Base: 233 organisations · more than one answer allowed
| Answer | % of base | Organisations |
|---|---|---|
| Business need | 91.4% | 213 |
| Role level | 55.4% | 129 |
| Other eligibility criteria | 12.9% | 30 |
| Performance rating | 7.7% | 18 |
Does your organisation operate a flexible benefits platform (employees can choose/adjust benefits)?
Base: 269 organisations
| Answer | % of base | Organisations | Prevalence |
|---|---|---|---|
| No | 48.7% | 131 | common |
| Yes | 39.8% | 107 | alternative |
| In development | 11.5% | 31 | rare |
Do you provide a personalised/flexible benefits allowance employees can allocate by choice?
Base: 269 organisations
| Answer | % of base | Organisations | Prevalence |
|---|---|---|---|
| No | 61.3% | 165 | common |
| Limited choice | 27.1% | 73 | alternative |
| Personalised allowance | 11.5% | 31 | rare |
Are employee benefits reviewed regularly to assess relevance and value?
Base: 222 organisations
| Answer | % of base | Organisations | Prevalence |
|---|---|---|---|
| No | 75.2% | 167 | common |
| Yes – at least annually | 22.1% | 49 | alternative |
| Yes – occasionally | 2.7% | 6 | rare |
Are benefit costs tracked centrally as part of total reward reporting?
Base: 269 organisations
| Answer | % of base | Organisations | Prevalence |
|---|---|---|---|
| Yes | 37.5% | 101 | common |
| Partially | 32.7% | 88 | alternative |
| No | 29.7% | 80 | alternative |
Does the organisation track enrolment and utilisation for key benefits (e.g., pension, private medical, wellbeing benefits)?
Base: 245 organisations
| Answer | % of base | Organisations | Prevalence |
|---|---|---|---|
| No | 41.6% | 102 | common |
| Yes – tracked for some benefits | 33.9% | 83 | alternative |
| In development | 13.5% | 33 | rare |
| Yes – tracked for most key benefits | 11.0% | 27 | rare |
Are your employee benefits linked to defined objectives (e.g., retention, engagement, productivity) and reviewed against them?
Base: 268 organisations
| Answer | % of base | Organisations | Prevalence |
|---|---|---|---|
| Objectives not reviewed | 31.3% | 84 | common |
| Objectives reviewed annually | 30.6% | 82 | alternative |
| No objectives | 25.0% | 67 | alternative |
| Objectives linked to productivity | 13.1% | 35 | rare |
Do you use an external benefits broker or adviser?
Base: 265 organisations
| Answer | % of base | Organisations | Prevalence |
|---|---|---|---|
| None | 43.4% | 115 | common |
| Project-based adviser | 32.5% | 86 | alternative |
| Full-service broker | 24.2% | 64 | alternative |
How often do you take your main benefits back out to market to test cost and cover?
Base: 267 organisations
| Answer | % of base | Organisations | Prevalence |
|---|---|---|---|
| Never | 33.7% | 90 | common |
| Less often than every 3 years | 32.6% | 87 | alternative |
| Every 2–3 years | 25.5% | 68 | alternative |
| Annually | 8.2% | 22 | rare |
Do you measure benefits take-up and use it in design decisions?
Base: 266 organisations
| Answer | % of base | Organisations | Prevalence |
|---|---|---|---|
| No | 75.6% | 201 | common |
| Occasionally | 14.3% | 38 | rare |
| Systematically | 10.2% | 27 | rare |
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David Whitfield, Allowances, company cars and benefits: UK benchmark 2026. lumi, collection window 2026 H1. https://lumihr.co.uk/research/allowances-cars-benefits-2026Last reviewed 20 September 2026 · Figures describe organisations in the lumi reward benchmark, not a random sample of UK employers. Every figure on this page states the question asked and the number of organisations that answered it.