UK offer big grants for EVs as it aims to reach 80 pct EV market by end of decade

The United Kingdom is doubling down on electric vehicles, offering sizeable rebates for new EVs in a market where EVs already account for one in four new car sales.

The government announced this week that it would offer up to £3,750 for eligible EVs priced at or under £37,000 as part of a  £650 million scheme. It is also offering £63 million for expanding EV infrastructure, and £2 million in Scotland to help decarbonise heavy goods vehicle (HGV) operators.

The new Electric Car Grant (ECG) will only be eligible for carmakers who deliver vehicles which the UK government declare are of “the highest manufacturing sustainability standards”.

“This EV grant will not only allow people to keep more of their hard-earned money – it’ll help our automotive sector seize one of the biggest opportunities of the 21st century,” said Heidi Alexander, British transport secretary.

The ECG picks up after the cancellation in 2022 of a previous scheme which delivered up to £1,500 off new vehicles. It also answers the calls of trade associations and manufacturing groups across the UK who have been calling for the government to deliver fresh incentives to increase EV adoption.

“Today’s announcement of the return of government support for the purchase of electric vehicles is a clear signal to consumers that now is the time to switch,” said Mike Hawes, CEO of the Society of Motor Manufacturers and Traders (SMMT).

“Rapid deployment and availability of this grant over the next few years will help provide the momentum that is essential to take the EV market from just one in four today, to four in five by the end of the decade.”

The £63 million EV infrastructure package includes a £25 million to enable local authorities to provide cheaper at-home charging, providing access to cheaper household rates that is set to save consumers up to £1,500 a year compared to running a petrol or diesel car.

It will also address limitations for homes without driveways, with a new cross-pavement technology will allow charging cables to run safely beneath the pavement to cars parked on the road.

Additionally, funding will be made available to help transition National Health Service (NHS) fleets to electric vehicles, with NHS in England to receive £8 million to power the electrification of ambulances and medical fleets across over 200 NHS sites.

Other projects to receive funding include a plan to create thousands of chargepoints at business depots across the UK and a  modernisation of EV charging signage on major roads.

These moves build on the £400 million invested in charging infrastructure and the recent Zero Emission Vehicle Mandate updates, as well as a nationwide charging network which has reached 82,000 public chargepoints.

“We are making it easier and cheaper to own an electric vehicle,” said Alexander.

“We know access to charging is a barrier for people thinking of making the switch, so we are tackling that head on so that everyone – whether or not they have a driveway – can access the benefits of going electric.

“Our investment is about more than just charging points – it’s about charging up Britain’s economy. I’m proud that through this boost, we are helping deliver cheaper bills for families, massive savings for the NHS to reinvest in patient care, and thousands of new green jobs.”

Not to be left out, the Scottish government also recently announced a £2 million fund to help support HGV operators, manufacturers, financiers, and charge point operators to collaborate to identify ways to decarbonise road freight operations.