# Benefits and allowances: what UK employers provide in 2026 > UK benefits benchmarks 2026: flexible benefits, company cars and car allowances, redundancy terms and lifestyle benefits, with every base shown. Source: https://lumihr.co.uk/resources/benefits-lifestyle Author: David Whitfield (https://lumihr.co.uk/about/david-whitfield) Data: lumi reward benchmark · national · collection window 2026 H1 --- *lumi benchmarks · Benefits & lifestyle · Collection window 2026 H1 · By David Whitfield* > **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?](/research/allowances-cars-benefits-2026)) > - 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?](/research/redundancy-terms-2026)) This area covers the benefits package beyond pension and health: flexible benefits platforms, company cars and cash allowances, the Cycle to Work limit, lifestyle benefits, and the terms on which employment ends, including enhanced redundancy pay and outplacement. 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](/register). ## 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. ## Related - [All resources](/resources) — every paper, guide and template, filterable by topic. - [How the numbers are made](/methodology) — collection, the floor of three, and how positions are read. - [Who is in the sample](/sample) — the organisations behind every figure, by sector and by size. ## What the research says ### What percentage of UK employers offer 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%). - 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). Read the paper: https://lumihr.co.uk/research/allowances-cars-benefits-2026 ### What percentage of UK employers offer 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%). - 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). Read the paper: https://lumihr.co.uk/research/redundancy-terms-2026 ## The public figures - [Eligibility criteria for business need company car](https://lumihr.co.uk/metrics/eligibility-criteria-for-business-need-company-car): 91.3% selected “Business need” for eligibility criteria for business need company car (n = 231) - [Low-emission or electric vehicles mandated or prioritised](https://lumihr.co.uk/metrics/low-emission-or-electric-vehicles-mandated-or-prioritised): 70.8% answered “No” on low-emission or electric vehicles mandated or prioritised (n = 260) - [Company cars as a status or grade-based benefit provision](https://lumihr.co.uk/metrics/company-cars-as-a-status-or-grade-based-benefit-provision): 65.6% answered “No” on company cars as a status or grade-based benefit provision (n = 259) - [Cash allowance offered instead of a status car](https://lumihr.co.uk/metrics/cash-allowance-offered-instead-of-a-status-car): 74.4% answered “No” on cash allowance offered instead of a status car (n = 262) - [Employee benefits reviewed regularly to assess relevance](https://lumihr.co.uk/metrics/employee-benefits-reviewed-regularly-to-assess-relevance): 75.9% answered “No” on employee benefits reviewed regularly to assess relevance (n = 220) - [Average redundancy cost (x monthly base salary)](https://lumihr.co.uk/metrics/average-redundancy-cost-x-monthly-base-salary): 31.9% answered “3x-4x” on average redundancy cost (x monthly base salary) (n = 235) - [Notice handling approach in redundancy situations](https://lumihr.co.uk/metrics/notice-handling-approach-in-redundancy-situations): 56.3% answered “Payment in lieu of notice (PILON) is typically used” on notice handling approach in redundancy situations (n = 199) - [Redundancy pay calculation basis](https://lumihr.co.uk/metrics/redundancy-pay-calculation-basis): 32.7% answered “Basic salary + contractual allowances” on redundancy pay calculation basis (n = 202) - [Documented redundancy process](https://lumihr.co.uk/metrics/documented-redundancy-process): 76.2% have documented redundancy process in place; a further 4.2% have it partly in place (n = 260) - [Selection criteria for redundancy documented and objective](https://lumihr.co.uk/metrics/selection-criteria-for-redundancy-documented-and-objective): 40.3% have selection criteria for redundancy documented and objective in place; a further 26.7% have it partly in place (n = 258) - [Redundancy outcomes review for fairness and bias](https://lumihr.co.uk/metrics/redundancy-outcomes-review-for-fairness-and-bias): 16.8% have redundancy outcomes review for fairness and bias in place; a further 13.5% have it partly in place (n = 244) - [Outplacement or career transition support offered](https://lumihr.co.uk/metrics/outplacement-or-career-transition-support-offered): 54.1% have outplacement or career transition support offered in place (n = 259) - [Line managers trained to manage redundancy conversations](https://lumihr.co.uk/metrics/line-managers-trained-to-manage-redundancy-conversations): 35.2% have line managers trained to manage redundancy conversations in place (n = 250) - [Redundancy pay terms offered](https://lumihr.co.uk/metrics/redundancy-pay-terms-offered): 58.4% answered “Enhanced redundancy pay (standard formula)” on redundancy pay terms offered (n = 262) - [Maximum redundancy pay multiple offered, excluding notice](https://lumihr.co.uk/metrics/maximum-redundancy-pay-multiple-offered-excluding-notice): 26.5% answered “More than 1.5× to 2×” on maximum redundancy pay multiple offered, excluding notice (n = 98) - [Maximum number of weeks' pay used to calculate redundancy](https://lumihr.co.uk/metrics/maximum-number-of-weeks-pay-used-to-calculate-redundancy): 24% answered “13–26 weeks” on maximum number of weeks' pay used to calculate redundancy (n = 96) - [Benefits currently offered](https://lumihr.co.uk/metrics/benefits-currently-offered): 88.8% selected “Life assurance” for benefits currently offered (n = 267) - [Flexible benefits platform](https://lumihr.co.uk/metrics/flexible-benefits-platform): 40.1% have flexible benefits platform in place; a further 11.6% have it partly in place (n = 267) - [Benefit costs tracked centrally as part of total reward](https://lumihr.co.uk/metrics/benefit-costs-tracked-centrally-as-part-of-total-reward): 37.8% have benefit costs tracked centrally as part of total reward in place; a further 32.6% have it partly in place (n = 267) - [Benefits enhanced for cost-of-living or market pressure](https://lumihr.co.uk/metrics/benefits-enhanced-for-cost-of-living-or-market-pressure): 27.7% have benefits enhanced for cost-of-living or market pressure in place (n = 267) - [Employer-funded PMI eligibility rate](https://lumihr.co.uk/metrics/employer-funded-pmi-eligibility-rate): 71.9% answered “10–24%” on employer-funded PMI eligibility rate (n = 185) - [Salary sacrifice arrangements participation rate](https://lumihr.co.uk/metrics/salary-sacrifice-arrangements-participation-rate): 31.5% answered “10–24%” on salary sacrifice arrangements participation rate (n = 219) - [Paid study time for funded qualifications](https://lumihr.co.uk/metrics/paid-study-time-for-funded-qualifications): 63% have paid study time for funded qualifications in place; a further 37% have it partly in place (n = 208) - [EV home charging reimbursement rate (pence per kWh)](https://lumihr.co.uk/metrics/ev-home-charging-reimbursement-rate-pence-per-kwh): 100% have EV home charging reimbursement rate (pence per kWh) in place (n = 243) - [Company car eligibility mileage requirement](https://lumihr.co.uk/metrics/company-car-eligibility-mileage-requirement): 96.7% have company car eligibility mileage requirement in place (n = 213) - [Benefits participation and utilisation](https://lumihr.co.uk/metrics/benefits-participation-and-utilisation): 42% answered “No” on benefits participation and utilisation (n = 243) - [LGBTQ+ inclusive benefits coverage](https://lumihr.co.uk/metrics/lgbtq-inclusive-benefits-coverage): 24.6% have LGBTQ+ inclusive benefits coverage in place; a further 59.8% have it partly in place (n = 264) - [Trans-inclusive health/benefits support](https://lumihr.co.uk/metrics/trans-inclusive-health-benefits-support): 19.9% have trans-inclusive health/benefits support in place; a further 71.5% have it partly in place (n = 246) - [Optional benefits enrolment rate](https://lumihr.co.uk/metrics/optional-benefits-enrolment-rate): 30.4% answered “50%–74%” on optional benefits enrolment rate (n = 237) - [Relocation support availability](https://lumihr.co.uk/metrics/relocation-support-availability): 72.3% answered “Yes – case by case” on relocation support availability (n = 253) - [Personalised/flexible benefits allowance](https://lumihr.co.uk/metrics/personalised-flexible-benefits-allowance): 11.6% have personalised/flexible benefits allowance in place; a further 27.3% have it partly in place (n = 267) - [Reasonable-adjustment process for benefits access](https://lumihr.co.uk/metrics/reasonable-adjustment-process-for-benefits-access): 42.8% answered “No” on reasonable-adjustment process for benefits access (n = 264) - [EV-only restriction on salary-sacrifice cars](https://lumihr.co.uk/metrics/ev-only-restriction-on-salary-sacrifice-cars): 69.1% answered “EV-led (EV prioritised)” on EV-only restriction on salary-sacrifice cars (n = 97) - [Workplace EV charging](https://lumihr.co.uk/metrics/workplace-ev-charging): 75.4% answered “No” on workplace EV charging (n = 264) - [Public transport subsidy beyond season-ticket loans](https://lumihr.co.uk/metrics/public-transport-subsidy-beyond-season-ticket-loans): 79.2% answered “Neither” on public transport subsidy beyond season-ticket loans (n = 264) - [Benefits supporting sustainable choices](https://lumihr.co.uk/metrics/benefits-supporting-sustainable-choices): 100% have benefits supporting sustainable choices in place (n = 72) - [Contractor access to employee benefits](https://lumihr.co.uk/metrics/contractor-access-to-employee-benefits): 77.1% answered “None” on contractor access to employee benefits (n = 266) - [Enhanced voluntary redundancy terms](https://lumihr.co.uk/metrics/enhanced-voluntary-redundancy-terms): 69% answered “Same as compulsory terms” on enhanced voluntary redundancy terms (n = 168) - [Early-retirement / pension-bridging support](https://lumihr.co.uk/metrics/early-retirement-pension-bridging-support): 79.2% answered “No” on early-retirement / pension-bridging support (n = 265) ## Guides and templates - [How to set a car allowance policy](https://lumihr.co.uk/guides/how-to-set-car-allowance-policy) - [How to calculate statutory redundancy pay (2026/27)](https://lumihr.co.uk/guides/how-to-calculate-statutory-redundancy-pay)