Category: Workplace health initiatives · Reviewed by Jake Leat, Associate Director · Last reviewed 2026-06-10
A lifestyle benefit scheme provides employees with access to discounted lifestyle benefits — gym, retail discounts, holidays, electronics, technology purchases, education, family services — sometimes funded by salary sacrifice. The scheme is distinct from the statutory and protection benefits (group risk, PMI, pensions) and aims principally at employee engagement, retention and demonstration of employer commitment to employee wellbeing.
Category: Workplace health initiatives Also known as: Voluntary benefits, flexible benefits Typical funding: Salary sacrifice or employee-paid Related concepts: Wellbeing benefit platform, Workplace fitness benefit, Wellbeing benefit
The market is dominated by integrated wellbeing platforms (Perkbox, Reward Gateway, Hapi) which provide a single point of access to multiple benefits including: discounts at major retailers; Cycle to Work; electric vehicle salary sacrifice; technology purchase plans; gym subscriptions; pet insurance; legal services; will-writing; childcare assistance; pet insurance; and travel discounts.
Tax treatment varies widely by benefit. Cycle to Work salary sacrifice is exempt under section 244 ITEPA 2003 read with the Cycle to Work Alliance guidance. Electric vehicle salary sacrifice benefits from the very low BIK rate on zero-emission company cars (2% from 2022/23). Retail discount programmes are typically not taxable (commercial discounts negotiated by the platform). Subsidised gym memberships are normally taxable as benefit in kind.
A typical lifestyle benefit scheme costs the employer £15–£40 per employee per year for the platform plus the (limited) employer NIC saving from salary sacrifice elements. Employee uptake of individual benefits varies widely; retail discounts and Cycle to Work are typically the most-used elements.
A 150-employee firm provides a lifestyle benefit platform with retail discounts, Cycle to Work, EV salary sacrifice, and a technology purchase plan. The retail discount element costs the employer nothing (paid for by retailer commission); the platform itself costs £20 per employee; Cycle to Work and EV salary sacrifice generate small NIC savings on the salary sacrificed. Over a year, 70% of employees register and 30% use one or more of the salary sacrifice elements.
This entry is part of the Apex Insurance Wiki. Last reviewed by Matt Bartlett on 2026-06-10. Next review: 2026-12-10.
Apex Insurance Brokers Limited. Authorised and regulated by the Financial Conduct Authority, FRN 724952. Registered in England and Wales, Companies House 07014570. This entry provides general information about UK insurance concepts and is not regulated advice. Consult your insurance broker on your specific position.
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