New Funding Boost for Electric Car Grant & Charging Stations

Greetings, Net Zero News Community,

In a significant development for electric vehicle (EV) enthusiasts and the broader push towards sustainable transport, the UK government has unveiled a substantial £1.5 billion package aimed at extending the Electric Car Grant and bolstering the nation’s charging infrastructure. This announcement, made during today’s Autumn Budget, signals a renewed commitment to facilitate the transition to electric mobility for consumers across the country.

The Electric Car Grant, which was launched in July of this year, has already proven to be a game-changer, assisting over 35,000 drivers in making the switch to electric vehicles by offering up to £3,750 off eligible models. The latest funding boost, which includes an additional £1.3 billion earmarked for the initiative, will extend the scheme through to 2029/30, ensuring that more drivers have the opportunity to embrace electric vehicles.

Alongside this funding, the government has pledged an extra £200 million for charging infrastructure. This includes a significant £100 million investment aimed specifically at enhancing EV charging facilities, building on the £400 million allocated during the Spending Review of 2025. These efforts will support the installation of home and workplace charge points, adding to the impressive tally of nearly one million already in place across the UK.

Moreover, the Treasury is directing £100 million towards resource funding for local authorities and public bodies. This funding will facilitate the training and deployment of personnel specialised in the EV sector, accelerating the rollout of public charge points. The government reports that there are already close to 87,000 public charge points available nationwide, and this investment aims to expand that network further.

Among the various initiatives announced in the Budget, a consultation was launched regarding permitted development rights for cross-pavement EV charging. This measure is expected to streamline the process for households without driveways to gain access to EV charging facilities. This follows a £25 million scheme introduced in July to support local councils in implementing discreet cross-pavement channel charging solutions for residents.

In a bid to further incentivise the growth of EV infrastructure, the government has also announced a 10-year 100% business rates relief for eligible EV charge points and EV-only forecourts. This measure ensures that these facilities will not incur any business rates liabilities, fostering a more supportive environment for electric mobility.

Additionally, the government has decided to extend the 100% first-year allowances (FYAs) for zero-emission cars and EV charge point infrastructure for another year, further encouraging investment in these critical areas.

The Society of Motor Manufacturers and Traders (SMMT) and the National Franchised Dealers Association (NFDA) have both expressed their approval of the enhancements to the Electric Car Grant. Paul Hollick, chair of the Association of Fleet Professionals, commented positively on the substantial increase in funding for the grant, suggesting that it is a strategic move to counteract any potential decline in EV demand due to the introduction of a new road charging scheme.

“While this scheme primarily targets retail customers rather than fleet users, it is beneficial for everyone if the EV market receives a boost,” Hollick remarked. However, concerns have been raised regarding the mixed messages emanating from the government, particularly in light of the new ‘eVED’ pay-per-mile charge, which some industry experts believe could offset the benefits of the grant.

Chris Joyce, managing director of Sogo Mobility, voiced his concerns, stating, “While the government has chosen to protect the EV grant and invest further in charging infrastructure—steps that are certainly welcome—they do not address the broader issues at play. A grant cannot counterbalance policies that increase the operational costs of EVs. Moreover, the expansion of charging points offers little reassurance if running costs continue to escalate. Penalising early adopters sends an inappropriate message at this critical juncture.”

John Cassidy, sales managing director at Close Brothers Motor Finance, echoed these sentiments, stating, “On one hand, the Chancellor has introduced a pay-per-mile tax on electric vehicle drivers, while on the other hand, she acknowledges the necessity for further support to encourage EV uptake through the continuation of the Electric Car Grant. Although the grant has been increased to offer up to £3,750 off EVs priced under £37,000 until 2029/30, concerns remain regarding the rising costs of new EVs and the limited options covered by the grant.”

Despite the challenges, Cassidy welcomed the commitment to developing the country’s EV charging infrastructure, emphasising that it is essential to address the existing disparity between urban and rural areas. “While initiatives to incentivise the installation of home chargers are crucial, the government must also tackle the ongoing issues besetting the public charging network, including spiralling charging costs and inadequate availability in key regions. Failing to address these issues could render purchasing an EV a genuine downgrade for consumers,” he cautioned.

Oliver Phillpott, CEO of Generational, also highlighted the importance of the Electric Car Grant extension for first-time electric vehicle buyers. However, he pointed out a significant gap in support for the used car market, which is poised to play a vital role in the mass adoption of electric vehicles. “While support for new EVs is crucial, the Budget does not adequately address the needs of the used market, which is becoming increasingly important as buyers seek clarity and reassurance, particularly concerning battery health,” he explained.

In a related development, Drax Electric Vehicles underscored the necessity for enhanced investment and management of charging infrastructure. Adam Hall, director of energy services, noted that recent Freedom of Information research indicates that 67% of councils now report full compliance with the Public Charge Point Regulations 2023 (PCPR), a notable increase from 47% last year. These regulations are designed to ensure that public EV chargers meet minimum standards for accessibility, reliability, payment options, and data sharing, ultimately making charging more straightforward and consistent for drivers.

Looking ahead, Hall pointed out that the next phase of these regulations is set to take effect from November 2025, which will require councils to further simplify and enhance the reliability of charging options for drivers. “Ongoing collaboration between government, councils, and private operators will be essential to ensure that all councils continue striving towards full compliance. Moreover, a coordinated national-local strategy is imperative to identify and install charge points where they are most needed, thus avoiding gaps in rural and underserved areas and catering to fleets, employees, and everyday drivers alike,” he stated.

Hall also expressed a desire to see action on the issue of VAT for public charging in this Budget. The Chancellor has faced increasing pressure to reduce VAT on public charging to align it with the significantly lower tax rate on home charging. Currently, public charging is subject to a 20% tax, while home charging enjoys a mere 5% rate. “For businesses deploying EV fleets, equitable energy pricing at public charging points is crucial for maintaining operational efficiency and predictable costs. Furthermore, for employees and individuals without access to home chargers, establishing a level playing field is vital for making the EV transition accessible to all,” Hall concluded.

As we reflect on these developments, it is clear that while the UK government is making significant strides in supporting the EV sector, there remains much work to be done to address the challenges that persist. The balance between encouraging adoption through grants and managing the operational costs associated with EV ownership will be pivotal in ensuring a sustainable and equitable transition to a greener transport future.

Together, let us continue to advocate for policies and initiatives that promote a cleaner, more sustainable future for all.