EV subsidies ‘on the way’ as government unveils £63m charging boost

The UK government will announce new measures to make electric cars more affordable later this week, according to new reports.

A report in the Telegraph suggests that a £640 million grant scheme is to be launched to help more drivers switch to EVs, alongside a newly announced £63m pot to support charging infrastructure in England.

The paper quoted Transport Secretary Heidi Alexander as saying that changes were needed to address the relatively high upfront purchase cost of EVs compared with petrol or diesel cars.

It claimed that the new grant, which would replace the Plug-in Car Grant scrapped by the previous Conservative government, will act on a sliding scale and offer the biggest support for UK-built EVs.

That suggests that models such as the new Nissan Leaf and Juke – both of which will be built in Sunderland – could receive higher levels of incentives. The report also claims that there will be a cut-off, meaning buyers of more expensive models will not be eligible for government help – addressing a criticism of the previous PiCG.

Previous reports have suggested that rather than a cash discount provided by the government, any new incentive might take the form of low-cost or zero-interest loans to help with the purchase price.

Asked about the report by the BBC, Ms Alexander refused to comment on its accuracy, but said an announcement will be made later this week.

She told the Telegraph: “We do know that the high upfront purchase cost of EVs is something that people are wary about.

“I think we’ve got to be honest and say there are a lot of people out there who think that EVs are just for the very wealthiest.”

She also acknowledged that some drivers still needed to be convinced that range and charging are not issues. She added: “We also want to really move away from people having range anxiety, to people having range awareness and knowing that they’re going to be able to make the journeys that they want to make.

“It’s right that the government thinks in the round about what we can do to tackle both of the issues, on charging and on the upfront cost of purchase.”

The report comes just days after new data showed EV sales continue to rise sharply but are still at risk of falling short of the ZEV mandate targets. Half-year figures from the Society of Motor Manufacturers and Traders showed that EV registrations are up 34.6% year-on-year, but remain at just below 22%, with a target of 28% by the end of the year.

Charging support

Separate from any vehicle purchase support, on Sunday the government announced a £63m funding programme to support more charger roll-out.

This includes £25m for councils in England to install cable gullies in residential areas. These allow EV owners without off-street parking to safely charge their car at the kerbside and take advantage of low domestic energy tariffs that can cut running costs to just 2p per mile.

The package also includes £8m for NHS England to electrify its medical fleets, cash for businesses to install depot charging and funding for new signage on major A-roads directing drivers to charging hubs.

Vicky Read, CEO of ChargeUK welcomed the additional funding. She said: “With 82,000 public charge points already installed across the UK, this positive action on strategic road signage will help more drivers see the extensive charging network that’s rapidly being built across the country.

“This announcement shows government recognising the vital role charging plays in the transition, and we look forward to working together to maintain the UK’s position as Europe’s leading EV market.”