The UK government plans to unveil new measures making electric vehicles more affordable this week, sources confirm.
A £640 million grant scheme will launch to help drivers transition to EVs, according to the Telegraph. The program accompanies a separate £63 million package supporting charging infrastructure across England.
Transport Secretary Heidi Alexander cited the need to address EVs’ higher upfront costs compared to petrol and diesel vehicles.
The new grant would replace the Plug-in Car Grant that the previous Conservative government eliminated. It operates on a sliding scale – offering maximum support for UK-manufactured EVs.
Models like the upcoming Nissan Leaf and Juke, both built in Sunderland, could receive enhanced incentives under this structure.
The program includes a price cap, preventing buyers of expensive models from receiving government assistance. This addresses a key criticism of the previous PiCG system.
Earlier reports suggested the incentive might involve low-cost or zero-interest loans rather than direct cash discounts.
When the BBC asked about these reports, Alexander declined to confirm specifics but promised an announcement this week.
“We do know that the high upfront purchase cost of EVs is something that people are wary about,” she told the Telegraph.
“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.”
Alexander acknowledged that drivers need convincing about range and charging capabilities.
“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.”
She emphasized the government’s comprehensive approach addressing both charging infrastructure and purchase costs.
The announcement follows new data showing EV sales up 34.6% year-on-year but still falling short of ZEV mandate targets. Society of Motor Manufacturers and Traders figures show registrations at just below 22% – with a 28% target by year-end.
Infrastructure Investment
The government announced a separate £63 million charging infrastructure program on Sunday, independent of vehicle purchase support.
The package allocates £25 million for English councils to install cable gullies in residential areas. These systems allow EV owners without driveways to charge safely at the kerb while accessing domestic energy tariffs – cutting running costs to as low as 2p per mile.
Additional funding includes:
- £8 million for NHS England fleet electrification
- Support for business depot charging installations
- Signage for major A-roads directing drivers to charging hubs
Vicky Read, CEO of ChargeUK, welcomed the investment.
“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,” she said.
Read praised the government’s recognition of charging infrastructure’s role in the EV transition. She expressed confidence in maintaining the UK’s position as Europe’s leading EV market through continued collaboration.
