A £1.5bn package to extend the Electric Car Grant and boost the UK’s charging infrastructure has been confirmed in today’s Autumn Budget.

Following reports earlier this week, the Treasury has confirmed extra funding and an extension for the Electric Car Grant, helping more drivers to go electric.

The Electric Car Grant launched in July this year and has already helped over 35,000 drivers to make the switch to an EV by giving up to £3,750 off eligible EV models.

The extra cash, which was announced alongside plans for a new EV pay-per-mile charge, will provide an additional £1.3bn of funding and extend the scheme to run until 2029/30 to support more consumers to switch.

In addition, the Government is pledging an extra £200m for charging, including investing an additional £100m in EV charging infrastructure, building on the £400m of funding announced at Spending Review 2025. This includes funding to support the installation of home and workplace charge points, adding to the around a million already installed.

The Treasury is also allocating £100m of resource funding for local authorities and public bodies to support the training and deployment of specialist staff, accelerating the rollout of public charge points. The Government said these investments would build on the almost 87,000 public charge points already available across the country.

The Government also said it will review the cost of public EV charging, looking at the impact of energy prices, wider cost contributors, and options for lowering these costs for consumers. The review will start in Q1 2026 and report by Q3 2026.

Other changes announced in the Budget include the launch of a consultation on permitted development rights for cross‑pavement EV charging, which will make gaining access to EV charging quicker and cheaper for households without driveways. This is on top of the £25m scheme announced in July to support local authorities to provide discreet cross-pavement channel charging solutions for residents.

The Government also announced the introduction of 10-year 100% business rates relief for eligible EV charge points and EV-only forecourts, to ensure that they face no business rates liability. Seen as a real triumph, this will help keep charging prices for drivers down.

Accompanying this, the Treasury will extend the 100% first-year allowances (FYAs) for zero-emission cars and EV charge point infrastructure by a further year.

Finally, the Government will extend funding for the Drive35 programme, allocating a further £1.5bn to 2035 and taking total funding to £4bn over the next 10 years. This will support the development of UK capability in next generation, zero emission technology, ensuring the UK remains globally competitive.

The Society of Motor Manufacturers and Traders (SMMT) and the National Franchised Dealers Association (NFDA) both welcomed the changes to the Electric Car Grant.

And Paul Hollick, chair of the Association of Fleet Professionals, said: “It is welcome that Electric Car Grant funding has been increased quite substantially; a measure presumably designed to counter any fall in EV demand caused by road charging. While this scheme is perhaps more directly relevant to retail rather than fleet customers, it’s a positive for everyone if the EV market receives any kind of boost.”

However, others accused the Government of mixed messages, with the boost to the Electric Car Grant accompanied by the news of the new ‘eVED’ pay-per-mile EV charge.

Chris Joyce, managing director of Sogo Mobility, said: “The Government has chosen to protect the EV grant and invest further in charging infrastructure. These are welcome steps, but they do not repair the wider damage. A grant cannot counter policies that make EVs more expensive to operate. More charge points offer little comfort if running costs keep rising. Penalising early adopters sends the wrong message at the wrong time.”

John Cassidy, sales managing director at Close Brothers Motor Finance, said: “While with one hand the Chancellor has imposed a pay-per-mile tax on electric vehicle drivers, with the other she has acknowledged the need for further support for the uptake of electric vehicles, and has continued the Electric Car Grant scheme. The scheme has been given a boost – continuing to offer up to £3,750 off EVs priced under £37,000 until 2029/30, though worries remain over the elevated prices of new EVs, the amount of options covered by the grant and whether this is not enough carrot against too much stick.”

However, Cassidy said the support for the development of the country’s EV charging infrastructure was welcome news, and much needed to address the current imbalance between urban and rural areas.

He added: “While active measures to incentivise the instalment of home chargers are an important part of progress, funds are needed for the Government to address the ongoing issues with the public charging network, including surging charging costs, and low availability in key areas. Not taking action here could make an EV purchase a genuine downgrade for consumers.”

Oliver Phillpott, CEO of Generational, said: “The extension of the Electric Car Grant is a positive step for motorists considering their first move into electric. But while support for new EVs is essential, the Budget leaves a clear gap when it comes to the used market, which will play a significant part in mass adoption moving forward.

“With the introduction of the eVED, EV ownership costs will rise for all drivers, yet there is still no equivalent incentive for pre-owned vehicles, which really matters. The volume of used EVs entering the market is growing rapidly, and buyers consistently tell us they want more clarity and reassurance, particularly around battery health.”

Meanwhile, Drax Electric Vehicles spotlighted the need for more investment in and management of charging infrastructure.

Adam Hall, director of energy services, said: “Our FOI research shows that 67% of councils now report full compliance with the Public Charge Point Regulations 2023 (PCPR), up from 47% last year. These regulations are designed to ensure public EV chargers meet minimum standards for accessibility, reliability, payment options, and data sharing, making charging easier and more consistent for drivers. Meanwhile, the proportion of councils reporting complete non-compliance has fallen from 21% to just 6%.”

The next phase of the regulations comes into effect from November 2025 and councils will need to make charging even simpler and more reliable for drivers.

Hall continued: “Ongoing collaboration between government, councils and private operators will be crucial to ensure all councils continue working towards full compliance. At the same time, a coordinated national-local strategy is needed to target charge points where they are most needed, helping to avoid gaps in rural and underserved areas and supporting fleets, employees, and everyday drivers alike.”

Hall also said it would have been great to see a move on VAT for public charging in this Budget. The Chancellor has come under increasing pressure to cut VAT on public charging in line with the tax rate on at-home charging. Currently, public charging is taxed at 20%, compared to just 5% for those charging at home.

Hall said: “For businesses deploying EV fleets, fair energy pricing at public points is essential to keep operations efficient and costs predictable. Equally, for employees and people without access to home chargers, a level playing field makes the EV transition accessible to everyone.”

Tom Hurst, UK country director at Fastned, said: “Measures to extend the Electric Car Grant and providing £200m for public charging are positive signals.

“However, other meaningful decisions have been delayed until next year which leaves a risk to continued rollout.

“Standing charges remain high and 20 per cent VAT on public charging continues to hold back momentum. Equalising VAT would unlock faster rollout, stronger investment and a smoother path to EV adoption ensuring all drivers can access affordable, fair and simple charging, regardless of whether they have a driveway.

“To unlock the crucial ultra rapid charging infrastructure that can meet growing demand, the Government must urgently tackle other cost barriers that undermine the business case for operators. If we want an electrified transport future, we need decisions that deliver real power.”