A two-year pause on academy trusts signing up for staff electric vehicle (EV) programmes has been lifted. The moratorium on EV salary sacrifice schemes was imposed by ministers in 2024 while officials clarified their approach to them amid cross-government talks. Academy bosses were subsequently ordered to secure permission from the Department for Education before entering a new scheme or accepting any further employees onto an existing one. But new guidance released today revealed these restrictions have been lifted. Here’s what you need to know… What you must do The DfE said trusts must ensure “they have adequate resources to implement and manage a salary sacrifice scheme” before entering one. They are also required to “seek legal, HR and audit advice to assess how each scheme operates” and clearly document their decision-making and financial-risk mitigations. Staff must also receive “clear information before they join” the programme and be told to seek “independent advice on the tax and pension implications of participating”. Participating employees are required to meet the earnings threshold so their salary remains above national minimum wage after scheme payments are deducted and “not be subject to any current performance- or conduct-related procedures”. DfE approval is not needed for schemes that “present no cost or liability” to the trust if an employee does not fulfil their contractual obligations with the provider “or where any liability has been comprehensively mitigated”. If this condition is not met, then the government’s greenlight is required before signing off on a deal. How to choose a scheme The guidance said trusts “must complete their own due diligence on suppliers” to find a scheme that “offers value and best suits their needs”. Employees’ leasing agreements are required to outline they are “responsible for the vehicle and all chargeable costs, including early termination fees and those relating to damage or poor maintenance”. It must be signed into the contracts between chains and staff that costs “due under the scheme will be deducted through payroll”. Agreements should also be in place ensuring the provider “is responsible for contacting the employee directly to seek any remedy under the lease agreement”. This will “minimise the administrative burden” on trusts. If a trust’s chosen scheme falls outside this description, they “must seek DfE written approval before entering” into it. The early EV schemes DfE advised trusts already offering an EV salary sacrifice scheme that was agreed before August 2026 to evaluate it. If it is not compliant with the new guidance, they should move to one that does “at the earliest opportunity without breaching agreements in place with their existing provider”.