Key findings
- Car allowance is the allowance most often offered, at 46.1% (n = 267), followed by shift allowance at 40.4%. (What percentage of UK employers offer a car allowance?)
- Enhanced redundancy pay on a standard formula is the common answer, at 58.2% (n = 263). 60.5% offer some enhanced redundancy pay (58.2% + 2.3%). (What percentage of UK employers offer enhanced redundancy pay?)
Every figure on this page comes from the lumi reward benchmark, with the number of organisations answering shown beside it. The papers below give the full distributions, and the public figures link to one page per metric. The register lists 55 metrics in this area, among them flexible benefits platform, annual car allowance amount by level and cycle to Work limit; every one has a public definition in the metric register.
What the research says
2 papers
What percentage of UK employers offer a car allowance?
46.1%n = 267offer a car allowance
- 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%).
Also in the paper
- 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).
What percentage of UK employers offer enhanced redundancy pay?
60.5%n = 263offer some enhanced redundancy pay
- Enhanced redundancy pay on a standard formula is the common answer, at 58.2% (n = 263). 60.5% offer some enhanced redundancy pay (58.2% + 2.3%).
- Where pay is enhanced, a maximum of "More than 1.5× to 2×" the statutory entitlement is the common answer, at 26.3% (n = 99; 120 "Not applicable" answers excluded). 18.1% set a maximum above 2× (13.1% + 3.0% + 2.0%).
- A maximum of "13–26 weeks" of pay is the common answer, at 23.7% (n = 97; 122 "Not applicable" answers excluded). 43.3% use a maximum above 26 weeks (13.4% + 18.6% + 6.2% + 4.1% + 1.0%).
Also in the paper
- Payment in lieu of notice (PILON) is the common approach to notice, at 55.7% (n = 201). An average redundancy cost of "3x-4x" monthly base salary is the common answer, at 31.8% (n = 236).
- 75.6% have a documented redundancy process applied consistently (n = 262). 16.7% review outcomes for fairness and bias (n = 246).
- "No outplacement support" is the common answer, at 45.6% (n = 261). Voluntary redundancy terms are the same as compulsory terms at 68.8% (n = 170).
- On avoiding dismiss-and-rehire, "No policy" and "Informal practice" are joint common answers, at 36.9% each (n = 263).
The public figures
39 metric pagesOne page per metric, each with its figure, its base and its collection window, from lumi's public UK reward metrics. The register lists 55 metrics in this area; a figure is published where enough organisations have answered.
- Eligibility criteria for business need company car91.3% “Business need”n = 231
- Low-emission or electric vehicles mandated or prioritised70.8% “No”n = 260
- Company cars as a status or grade-based benefit provision65.6% “No”n = 259
- Cash allowance offered instead of a status car74.4% “No”n = 262
- Employee benefits reviewed regularly to assess relevance75.9% “No”n = 220
- Average redundancy cost (x monthly base salary)31.9% “3x-4x”n = 235
- Notice handling approach in redundancy situations56.3% “Payment in lieu of notice (PILON) is typically used”n = 199
- Redundancy pay calculation basis32.7% “Basic salary + contractual allowances”n = 202
- Documented redundancy process76.2% have documented redundancy process in place; a further 4.2% have it partly in placen = 260
- Selection criteria for redundancy documented and objective40.3% have selection criteria for redundancy documented and objective in place; a further 26.7% have it partly in placen = 258
- Redundancy outcomes review for fairness and bias16.8% have redundancy outcomes review for fairness and bias in place; a further 13.5% have it partly in placen = 244
- Outplacement or career transition support offered54.1% have outplacement or career transition support offered in placen = 259
- Line managers trained to manage redundancy conversations35.2% have line managers trained to manage redundancy conversations in placen = 250
- Redundancy pay terms offered58.4% “Enhanced redundancy pay (standard formula)”n = 262
- Maximum redundancy pay multiple offered, excluding notice26.5% “More than 1.5× to 2×”n = 98
- Maximum number of weeks' pay used to calculate redundancy24% “13–26 weeks”n = 96
- Benefits currently offered88.8% “Life assurance”n = 267
- Flexible benefits platform40.1% have flexible benefits platform in place; a further 11.6% have it partly in placen = 267
- Benefit costs tracked centrally as part of total reward37.8% have benefit costs tracked centrally as part of total reward in place; a further 32.6% have it partly in placen = 267
- Benefits enhanced for cost-of-living or market pressure27.7% have benefits enhanced for cost-of-living or market pressure in placen = 267
- Employer-funded PMI eligibility rate71.9% “10–24%”n = 185
- Salary sacrifice arrangements participation rate31.5% “10–24%”n = 219
- Paid study time for funded qualifications63% have paid study time for funded qualifications in place; a further 37% have it partly in placen = 208
- EV home charging reimbursement rate (pence per kWh)100% have EV home charging reimbursement rate (pence per kWh) in placen = 243
- Company car eligibility mileage requirement96.7% have company car eligibility mileage requirement in placen = 213
- Benefits participation and utilisation42% “No”n = 243
- LGBTQ+ inclusive benefits coverage24.6% have LGBTQ+ inclusive benefits coverage in place; a further 59.8% have it partly in placen = 264
- Trans-inclusive health/benefits support19.9% have trans-inclusive health/benefits support in place; a further 71.5% have it partly in placen = 246
- Optional benefits enrolment rate30.4% “50%–74%”n = 237
- Relocation support availability72.3% “Yes – case by case”n = 253
- Personalised/flexible benefits allowance11.6% have personalised/flexible benefits allowance in place; a further 27.3% have it partly in placen = 267
- Reasonable-adjustment process for benefits access42.8% “No”n = 264
- EV-only restriction on salary-sacrifice cars69.1% “EV-led (EV prioritised)”n = 97
- Workplace EV charging75.4% “No”n = 264
- Public transport subsidy beyond season-ticket loans79.2% “Neither”n = 264
- Benefits supporting sustainable choices100% have benefits supporting sustainable choices in placen = 72
- Contractor access to employee benefits77.1% “None”n = 266
- Enhanced voluntary redundancy terms69% “Same as compulsory terms”n = 168
- Early-retirement / pension-bridging support79.2% “No”n = 265
Read off lumi's public metric pages as at 2026-10-31. Members see every metric in the register, against the peer group they choose.
Guides and templates
2 items
How-to guideHow to set a car allowance policy
Set a UK car allowance policy: cash or company car, the amount, car-or-cash choices, mileage rates, emissions, consolidation and review.
How-to guideHow to calculate statutory redundancy pay (2026/27)
Calculate statutory redundancy pay for 2026/27: eligibility, age bands, the £751 weekly cap, notice pay, tax, consultation and enhanced terms.
Frequently asked questions
What percentage of UK employers offer a car allowance?
In the lumi reward benchmark, car allowance is the allowance most often offered, at 46.1% (n = 267), followed by shift allowance at 40.4%.
What percentage of UK employers offer enhanced redundancy pay?
In the lumi reward benchmark, enhanced redundancy pay on a standard formula is the common answer, at 58.2% (n = 263). 60.5% offer some enhanced redundancy pay (58.2% + 2.3%).
How much redundancy pay do UK employers give, and is it more than the statutory minimum?
Statutory redundancy pay is half, one or one and a half weeks' pay for each full year of service by age, up to 20 years, with a week's pay capped at £751 from 6 April 2026. In the lumi reward benchmark, 60.5% of UK organisations offer some enhanced redundancy pay (58.2% + 2.3%) and 20.5% pay statutory redundancy pay only (n = 263).
What is the average car allowance in the UK?
The lumi reward benchmark records whether a car allowance is offered and how allowances are governed, not the amount paid. In it, car allowance is the allowance most often offered, at 46.1% of UK organisations (n = 267), 34.9% provide company cars as a status or grade-based benefit (n = 261), and 39.6% review allowances regularly as part of reward governance (n = 250). A cash car allowance is earnings: it goes through payroll with PAYE and Class 1 National Insurance.