Just in case you haven’t noticed the UK has reintroduced the Electric Car Grant (ECG), offering up to £3,750 off the purchase price of an eligible (that is the important bit) new electric vehicles (EVs).
Why is this? Well, Analysis of the monthly Europcar Mobility Group UK electric vehicle (EV) barometer for the first half of 2025 has revealed that, compared to the same period in 2024, the cost of purchasing and maintaining an EV is still a concern amongst private motorists. In H1 2024, 63% of drivers said they were held back from switching to an electric vehicle by the costs of EV ownership. The figure has remained static in H1 2025.
Model choice and availability as well as lack of knowledge both became slightly more of a barrier for drivers in 2025, rising from 15% to 16%, and 20% to 21%, respectively. There has, however, been a slight reduction in how much the charging infrastructure is holding drivers back from switching; falling from 48% in H1 2024 to 46% in H1 2025.
Looking at how the figures have changed so far in 2025 reveals little change in vehicle choice, knowledge and charging infrastructure, while cost has crept up. In January 2025 cost was a barrier for 56% of drivers, rising to 64% in June, however, the peak was seen in April, when 68% were held back by purchase and ownership costs.
These stats come with some pretty charts which are included here and let’s get back to what the government propose to do with taxpayers money and the endorsement of the Society of Motor Manufacturers and Traders.
The discount is available for EVs priced at £37,000 or less and is tiered based on the vehicle’s sustainability credentials which is supposed to dial out Chinese offerings, so there is a sliding scale down to a £1500 discount. That’s why manufacturers must have verified Science Based Targets (SBT) for emissions reductions to qualify. Band One (£3,750): requires full SBT validation, plus additional criteria like high renewable energy usage and verified carbon-neutral manufacturing. Band Two (£1,500): Requires a manufacturer to have an SBT commitment with approved interim targets and measurable progress towards validation.
This is all very well, but the whole of point of subsidies is to make the inappropriate rather more attractive. It is a cash incentive to help you change your mind, as simple as that. This is not am original take but essentially a uk car buying public which is electricity car sceptic is now funding these purchases.
What we have here is a good deal of confusion. Pop onto the Government website and at the moment there does not seem to be any models listed. What usually happens in the real retail world is that car dealers are quite likely to raise the prices, by well £3750, or £1500. Although what has also happened in real time that MG has introduced a £1500 discount on its 4 and S5 models as buyers haven’t taken up the Taxpayer grant in any significant way. Interestingly a number of other Chinese brands have introduced their own discounts early to get ahead of the European competition. Leapmotor cut their C10 and T03 models by £3750 and then GWM discounted the Ora 03 also by £3750. This has happened because the market has stalled completely and no one has bought anything in what is an age of total uncertainty.
One unanswered question is whether dealers can use this grant to pre-register, something they love doing. So far worse taxpayer money is being used to subsidise car dealer profits. There does not seem to be any way of stopping them doing this.
However much tax payers money is made available the simple truth is that no one can really afford to spend anything right now on a replacement vehicle.
The government has also announced other ‘incentives’. These include £25 million of funding to deliver cross-pavement charging channels, £30 million grant funding to install chargepoints at depots for vans, coaches and HGVs, supporting the transition of the road freight and coach sectors, £8 million of funding to install chargers at NHS sites and changes to allow EV hubs to be signed from major roads.
Not only that, an electric vehicle (EV) chargepoint grant can help towards the cost of installing an electric vehicle chargepoint socket at your property. You can get 75% off the cost to buy and install a socket, up to a maximum of £350. You can apply for this grant if you either own and live in a flat, or rent any residential property (this includes properties under the shared ownership scheme). Again, you must own an eligible vehicle and your home must have its own private off-street parking space.
Cutting a groove across a pavement is what’s potentially happening here if you don’t have a drive. It is a bit more than an angle grinder and resembles one of those old fashioned drains. It will probably clog up with mud and could be something of an issue when it is frosty. If you go and look at the companies offering this service they are coy about the costs. Gul-e https://gul-e.co.uk/ reckon it will set you back around a £1000. We asked them for a proper quote and we are still waiting for them to get back.
It might be possible to become very agitated and annoyed by the fact that you can’t park right outside your house all the time. In some built up urban areas it is close to impossible even if you have some of those magic cones. Don’tworry though, your local authority will come to the rescue, offering permits and designated parking at a price. At least you will have access to your gully or Gul E.
This £650 million scheme is in place until 2029, with the potential for early closure or changes to the scheme. Take your bets as to whether the Governments runs out of your money sooner or later. It could also be dressed up as a scrappage scheme to get ICE cars off the road and out of the transport equation.
The thing is you might imagine that with all those electricity cars on the road, the charging network is financially a good place to be. I mean if Sir Richard Branson is putting money into it, then it must be a nailed on investment. Except that Gridserve, has reduced its workforce whilst reporting losses exceeding £80m in 2024.They recorded a pre-tax loss of £82.7m for its most recent financial year, according to fresh accounts lodged with Companies House, as reported by City AM. Consequently they announcement extra investment of £100m. Meanwhile the taxpayer is expected to support the car industry and as usual we are paying for our own demise.
