The Government Should Offer More Electric Vehicle Incentives

CC Incentives image for blog post

With the planned Net-Zero deadline of 2050 just over the horizon, the United Kingdom is under increasing pressure to decarbonise its transport sector. One of the most effective ways to do this is by encouraging drivers to transition from petrol and diesel vehicles to electric alternatives. While some progress has been made, it’s clear that more substantial Electric Vehicle Incentives are needed to make electric vehicles (EVs) a realistic and attractive option for the majority of UK residents. Without greater government support, the pace of this transition may be too slow to meet the UK’s Net-Zero goals.

Reintroduce and Expand Purchase Grants

A significant barrier to EV adoption remains the higher upfront cost compared to internal combustion engine (ICE) vehicles. Although EVs often have lower running and maintenance costs, many drivers are deterred by the purchase price. The government’s now-defunct Plug-in Car Grant previously helped bridge this gap, but its withdrawal in 2022 left a major hole in EV affordability. Reintroducing this grant, particularly for affordable models, would be a strong step forward.

Additional subsidies for used electric cars could also make the second-hand EV market more attractive and affordable, especially for younger or lower-income drivers.

Tax Incentives and Salary Sacrifice Schemes

Another area ripe for expansion is tax-related incentives. The current Benefit-in-Kind (BiK) rate for electric company cars is incredibly low at just 3%, making them an appealing option for business users. Lowering this rate, and keeping it lower further into the future, plus broadening its scope to include a wider range of vehicles would encourage more businesses and employees to make the switch.

Similarly, government-backed salary sacrifice schemes can make electric vehicles more accessible to employees who might otherwise find them out of reach. These schemes effectively allow workers to pay for their EV through their gross salary, saving on both tax and National Insurance contributions.

Investment in Charging Infrastructure

Although not as great as it once was, range anxiety, the fear of running out of charge without access to a charging point, remains one of the biggest psychological barriers to EV adoption. To overcome this, the UK needs the nationwide rollout of reliable, fast-charging infrastructure, especially in rural and underserved urban areas, to be increased greatly. Although installations are now becoming more common outside of the major cities, there is still a long way to go.

Government funding should support the installation of public chargers in residential neighbourhoods, motorway service areas, and workplace car parks. It should also incentivise landlords and housing developers to include EV charging facilities at their properties.

Short-Term Rentals and Test Drives

Many consumers are hesitant to switch to EVs without first trying them. Offering more accessible short-term rentals could change that. EVision Electric Vehicles provides electric car hire and van rentals that give potential EV owners a taste of life with an electric car. For instance, you could hire a Renault Kangoo van for a week or rent a Mercedes EQE for a weekend road trip, allowing you to experience EV performance, range, and charging in real-world conditions.

This “try before you buy” approach could be encouraged through government subsidies for rental companies offering electric vehicles, or via local council initiatives aimed at increasing public exposure to EV technology.

Promote the Electric Car Driving Experience

There’s still a general lack of understanding around how EVs differ from conventional cars. Promoting the electric car driving experience through public campaigns and community events can dispel myths and showcase benefits like instant torque, quiet cabins, and lower running costs.

The government could fund “EV awareness days” at local venues where people can test drive different models and speak to EV owners. This direct exposure can be far more persuasive than any advert or brochure.

Supporting a Fully Electric Ecosystem

The broader aim should be to support a society that runs on everything electric. That means not just cars, but also vans, buses, electric minibuses, taxis, and even e-bikes. Government incentives should be part of a wider electrification strategy that touches every aspect of mobility.

Supporting businesses to electrify their fleets would have a knock-on effect, lowering emissions at scale and boosting the used EV market. For example, couriers, tradespeople, and delivery companies could be encouraged to switch by offering scrappage schemes or grants for electric vans.

A Greener Future Requires Bold Action on Electric Vehicle Incentives

If the UK is serious about meeting its environmental commitments, it must accelerate the transition to electric vehicles. Offering stronger and more diverse Electric Vehicle Incentives is key to achieving this. Whether it’s through direct purchase subsidies, better tax benefits, rental trials, or expanded infrastructure, these measures will help make EVs accessible to all.

By supporting individuals and businesses alike, the government can lead the way in creating a cleaner, quieter, and more sustainable transport system. Now is the time to act, because the road to Net-Zero starts with every driver who chooses to go electric.

A lot of these ideas may be wishful thinking. But we can dream, right?

 

*All information correct as of 29 May 2025

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