Net-Zero EV Funding: £1.3bn Boost for Retrofit, Hydrogen & Heat

Welcome to Net Zero News, where we bring you the latest developments driving the UK’s transition to a net-zero future. Today we report on the UK Government’s announcement of a further £1.3bn investment into the Electric Car Grant, together with additional funding for electric vehicle charging infrastructure.

Net Zero News can reveal that on 24 November 2025 the UK Government confirmed plans to inject a further £1.3bn into its Electric Car Grant programme. The announcement also includes unspecified cash to bolster EV charging networks across the country. Industry representatives have broadly welcomed the move, calling it a significant boost for zero-emission transport.

The Electric Car Grant was introduced to encourage drivers to switch from petrol and diesel vehicles to battery electric models by reducing the upfront purchase cost. The scheme offers a direct subsidy on eligible vehicles, making zero-emission motoring more affordable for consumers. Alongside this, the Government’s additional support for charging infrastructure aims to address concerns over range anxiety and improve charging availability in urban and rural areas alike.

Since its inception, the grant has played a central role in accelerating the adoption of battery electric vehicles across the UK. Demand for new electric cars has grown rapidly in recent years, driven by tighter emissions regulations and falling battery costs. However, the limited reach of public charging points has remained a hurdle, particularly for drivers without off-street parking or those travelling longer distances.

In a significant step towards the UK’s net-zero goals, this latest funding injection is designed to maintain momentum as the country moves to decarbonise its transport sector by 2050. Transport emissions accounted for around a quarter of the UK’s greenhouse gas footprint in the most recent official statistics, underlining the importance of shifting to electric mobility. By keeping purchase costs competitive and improving charging access, the Government hopes to sustain the pace of EV uptake.

Net Zero News understands this forms part of a broader Government strategy to drive down emissions from the sector while supporting domestic industries. Along with manufacturers of electric vehicles, UK-based chargepoint operators are anticipated to benefit from the new funding, although details of how the cash will be allocated between central programmes and local delivery remain to be confirmed.

The announcement follows commitments made under the UK’s Transport Decarbonisation Plan, which set out measures to electrify road transport and enhance charging infrastructure. It also aligns with the requirements of the Climate Change Act 2008 and the legally binding net-zero by 2050 target. Further support for EVs and charging networks has been flagged in the Government’s recent net-zero strategies and sector decarbonisation frameworks.

Communities across the UK could see improved access to charging points in areas that have struggled to deliver private chargepoints, such as high-density urban neighbourhoods and rural counties. Industry bodies have suggested that an expanded network will not only cater to private car drivers but also support fleets, taxis and delivery vehicles in making the shift to electric. Nonetheless, ensuring grid capacity and simplifying planning processes for new chargepoints remain challenges that need careful management.

Looking ahead, the Government is expected to set out further details on the allocation of the £1.3bn funding and the accompanying charging infrastructure investment in the coming weeks. Delivery milestones will likely coincide with the next financial year, providing clarity on the timeline for rolling out grants and new chargepoint installations.

Net Zero News is powered by the Net Zero Club.

Join the UK’s fastest-growing net-zero community.

Upcoming Events:

Net Zero Scotland Projects Conference – Edinburgh

Net Zero Nations Projects Conference – Westminster, London

Got a net-zero project to share? Email: lee@net-zero.scot