News
New support for electric car buyers
Government responds to industry appeals to make EV ownership more affordable for private buyers
Words by: Dan Trent
Published on 14 July 2025 | 0 min read
Getting on for one in four new cars sold in the UK is now fully electric, the UK the largest market for EVs in Europe and third biggest globally. By those numbers it would seem everything is going swimmingly for the transition away from fossil-fuelled cars and into cleaner and more efficient battery powered ones.
Inevitably it’s more complicated than that, and while incentives for company drivers and fleet buyers continue to drive strong electric car sales the picture for private buyers is more challenging. The more so for the fact the previous Plug-in Car Grant designed to help buyers with the extra cost of going electric has long-since disappeared while the ‘expensive car rate’ of VED (or road tax, as many know it) for vehicles costing more than £40,000 disproportionately now affects exactly the kind of mid-size electric cars private buyers would otherwise be choosing.
Inevitably it’s more complicated than that, and while incentives for company drivers and fleet buyers continue to drive strong electric car sales the picture for private buyers is more challenging. The more so for the fact the previous Plug-in Car Grant designed to help buyers with the extra cost of going electric has long-since disappeared while the ‘expensive car rate’ of VED (or road tax, as many know it) for vehicles costing more than £40,000 disproportionately now affects exactly the kind of mid-size electric cars private buyers would otherwise be choosing.
Add to that the fact those who can’t charge at home pay more VAT on the electricity to charge their cars than owners with the luxury of a driveway or off-street parking on domestic rates and it’s easy to see why many motorists are sticking to cheaper and more convenient petrol, diesel or hybrid cars. Which is a problem, if the industry is to hit the increasingly stringent targets demanded by the ZEV Mandate demanding 28 per cent of all new vehicles sold are electric this year. The proportion for this year so far stands at 25 per cent, and even then only propped up by discounting by manufacturers and retailers industry body the SMMT says has cost carmakers £6.5bn in the last 18 months alone. This, it says, is unstainable and it’s long been lobbying for more support for private EV buyers.
Hence the cautious welcome to news the Government has announced a £63m package to help make electric car ownership more affordable to private buyers, especially those without home charging. Exactly how this will work is yet to be announced, though many will be hoping for a return of some sort of Plug-in Car Grant to help bring down purchase costs.
On the ownership side we do know £25m of that figure will be going to local authorities to help develop on-street charging for drivers without off-street parking. At a practical level this could include “cross pavement technology” so you can run a charging lead from your house to your car. Sounds fancy, the reality being these will likely be little more than channels in the pavement with a cover over the top so passing pedestrians don’t trip on your cable. But it’s a start.
On the ownership side we do know £25m of that figure will be going to local authorities to help develop on-street charging for drivers without off-street parking. At a practical level this could include “cross pavement technology” so you can run a charging lead from your house to your car. Sounds fancy, the reality being these will likely be little more than channels in the pavement with a cover over the top so passing pedestrians don’t trip on your cable. But it’s a start.
“We are making it easier and cheaper to own an electric vehicle,” says Transport Secretary Heidi Alexander in a statement from the Department for Transport. “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.”
For its part the industry will be hopeful support for buyers will also be included. “A second consecutive month of growth for the new car market is good news, as is the positive performance of EVs,” says Mike Hawes of the SMMT. “As we have seen in other countries, government incentives can supercharge the market transition, without which the climate change ambitions we all share will be under threat.” Other practical measures will, meanwhile, included improved directions to help motorists find new charging hubs springing up around the country. “Signage impacts all the UK’s drivers because consumers need to see it to believe it,” says Osprey’s Ian Johnston. “Osprey have tirelessly highlighted the benefit that clear EV road signage would bring to drivers looking to make the switch.” More information when we have it but, in short, it looks like buying and owning an electric car could be about to get a little more affordable.
For its part the industry will be hopeful support for buyers will also be included. “A second consecutive month of growth for the new car market is good news, as is the positive performance of EVs,” says Mike Hawes of the SMMT. “As we have seen in other countries, government incentives can supercharge the market transition, without which the climate change ambitions we all share will be under threat.” Other practical measures will, meanwhile, included improved directions to help motorists find new charging hubs springing up around the country. “Signage impacts all the UK’s drivers because consumers need to see it to believe it,” says Osprey’s Ian Johnston. “Osprey have tirelessly highlighted the benefit that clear EV road signage would bring to drivers looking to make the switch.” More information when we have it but, in short, it looks like buying and owning an electric car could be about to get a little more affordable.