Adam Hall, director at Drax Electric Vehicles, on why the UK government’s latest announcements on electric car grants and charging funding are a significant and long-awaited step forward
Adam Hall, director at Drax Electric Vehicles, on why the UK government’s latest announcements on electric car grants and charging funding are a significant and long-awaited step forward for the sector but still missing vital policy amendments.
This week’s announcements mark a significant turning point for the UK’s electric vehicle transition, delivering the kind of comprehensive support package the industry has been calling for since the original plug-in car grant ended in 2022.
The £63m investment in public and depot charging is exactly the kind of targeted intervention businesses have been waiting for. Depot grants, in particular, will help unlock electrification for operators facing upfront infrastructure costs. We’ve worked with organisations across the UK where this kind of support can speed up implementation and reduce risk.
Backing NHS fleet electrification at more than 200 sites also sends a strong signal. When the public sector leads by example – especially with one of the country’s largest and most visible fleets – it builds confidence in EVs, normalises the technology, and stimulates demand for supporting infrastructure.
The £2.5bn DRIVE35 programme is a bold commitment to the future of the UK automotive sector. A 10-year policy horizon provides the kind of certainty manufacturers need to invest in domestic production, supply chains and R&D. That certainty is essential as the UK competes globally for EV investment. It also supports long-term goals like reducing the EV cost premium and making electric vehicles accessible to more buyers.
The new £650m Electric Car Grant is a positive move. Targeting vehicles up to and under £37,000 is smart as it supports affordability without distorting the market. And with electric car registrations up 34.6% year-to-date and EVs now representing 21.6% of the new car market, it’s clear there’s demand to build on.
However, because the grant is delivered via manufacturers, there’s no guarantee that all eligible models will benefit, or that the full discount will be passed on. A clear, transparent system will be essential to ensure the grant reaches the customers who need it. Including sustainability standards in the criteria is also a smart move – electrification must go hand-in-hand with responsible production.
While these new measures are a major boost, there are clear areas where continued focus could unlock further progress. For example, the electric van market is currently around 50% below where the ZEV mandate requires it to be. The business case for commercial EVs is improving, but challenges like higher upfront costs, payload constraints and limited range still make adoption harder for many operators.
Administrative challenges for vans over 3.5 tonnes – such as accelerated MOT requirements and driver hour restrictions – add further friction for operators. Streamlining these rules would be a simple step with significant impact on uptake.
There’s also a case for reforming the Expensive Car Supplement. Many core EV models for families and fleets sit just above the £40,000 threshold, attracting an additional £425 (plus inflation) per year in Vehicle Excise Duty. Raising this threshold would avoid penalising vehicles that are central to fleet decarbonisation, and would act as a price-sensitive, targeted incentive for further uptake.
Collectively, this week’s announcements give the EV market the kind of boost it’s been missing. Long-term investment, charging support and grants offer renewed confidence to businesses that are planning their transition. But time is short, and with the 2030 phase-out approaching, those who act early will be best positioned to benefit.
At Drax Electric Vehicles, we’re working with organisations across the UK to simplify and accelerate that journey. From initial assessment through to infrastructure, vehicles and long-term support, our end-to-end service is designed to make electrification work for your business.
