The Department for Transport (DfT) has announced major funding packages totalling £713m to boost the UK’s electric vehicle (EV) ‘revolution’.
The largest funding tranche is a £650m grant programme to encourage manufacturers to provide discounts of up to £3,750 on new EVs. The new Electric Car Grant (ECG) can be accessed by manufacturers for EVs priced at or under £37,000.
Manufacturers can apply from 16 July for the grant, which will be available until the 2028/29 financial year.
When asked how the government intended to ensure that customers benefited from the discount, the DfT stated that the dealer will be required to put the full amount of the grant on the invoice so that the customer can clearly see that the discount has been applied.
The funding will only be dispersed once the vehicle has been delivered to the consumer, Highways understands.
The DfT said the money for this grant came from both existing budgets and its Spending Review Settlement. This Spending Review allocated £1.4bn for the uptake of new EVs; however this money was for a period from 2026 to 2030. The latest announcement suggests some of this cash might be brought forward if the money is not covered from existing budgets.
Transport secretary Heidi Alexander said: ‘This EV grant will not only allow people to keep more of their hard-earned money – it’ll help our automotive sector seize one of the biggest opportunities of the 21st century.’
RAC head of policy Simon Williams said: ‘Three years after the arguably premature end of the plug-in car grant, this new scheme could be just the shot-in-the-arm needed to help more drivers go electric. Within weeks, discounted cars should start appearing at dealerships across the country.'
Local charge point roll-out
Another investment package aims to provide £63m to support at-home charging of EVs for households without driveways, more charge points for NHS fleets and create new charge points at business depots.
The cash has been allocated from a £200m pot set aside in the 2024 autumn budget to accelerate EV chargepoint roll-out this financial year.
This includes £25m for use by local authorities so that households can install cross-pavement charging technology.
This new charging solution uses gulleys installed in the pavement that allow charging cables to be run underneath the footpath, removing obstacles for pedestrians and enabling people without driveways to connect their vehicles directly to their homes. This means they will be able to access cheaper domestic electricity rates.
The capital funding from the grants is available to all Tier 1 local authorities (unitary, county, or combined authorities) in England. Combined authorities will be allocated and issued funding on behalf of authorities in their region.
In London, funding will be made available directly to boroughs.
'Further information on the application process will be issued shortly,' the DfT said.
It also stated that, whilst there is currently no date for the launch of this scheme, the cash will be made available to local authorities this financial year.
EV support for the NHS
Meanwhile, the NHS is also set to receive £8m for EV charge points. This fund will only be accessible across 200 NHS sites, with a full list of the sites being allocated funding available here.
The final part of the newly announced funding is set to expand access to charging points at business depots.
The DfT has confirmed to Highways that the remaining £30m from the total £63m pot will be used to support this scheme. This grant will be available from 16 July, with applications being 'assessed in turn according to a set of criteria' on a first-come, first-served basis.
Ms Alexander said: ‘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.
‘Through this boost, we are helping deliver cheaper bills for families, massive savings for the NHS to reinvest in patient care, and thousands of new green jobs.’
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