The Government needs to “put its foot on the accelerator” if the UK is to transition to electric vehicles in time to meet net zero targets, a new House of Lords committee report warns.

The report calls for a range of measures to encourage the switch to EVs, including targeted grants

Published by the Environment and Climate Change Committee, the ‘EV strategy: rapid recharge needed’ paper calls for the Government to act much faster on driving the switch to EVs. And it calls for a range of measures to encourage the switch; from tackling the disparity in upfront costs between EVs and petrol/diesel cars, through to looking at targeted grants to incentivise the purchase of new electric cars.

The report has been published following a call for evidence, which saw a wide range of witnesses warn that a combination of higher purchase costs, insufficient charging infrastructure and mixed messaging risks people not adopting EV cars.

Now, the Lords Select Committee has set out a range of actions whereby the Government can help equip drivers with the means and the confidence to switch to EVs.

These include:

• Work to instil confidence in consumers by exploring options to incentivise second-hand electric car sales, including developing a ‘battery health standard’;
• Reformation of road tax to give drivers a clear steer on future motoring costs;
• Equalising VAT for charging by reducing the 20% VAT rate applied to public charging to 5% in line with domestic electricity – as already called for by the RAC and FairCharge;
• Communicating a positive vision of the EV transition to consumers, and promoting comprehensive, clear, & accurate information.

It’s also calling for work to accelerate the rollout of the UK’s charging infrastructure through a range of measures, such as:

• Extending Local Electric Vehicle Infrastructure (LEVI) funding for another three years;
• Consulting on offering a ‘right to charge’ for tenants and leaseholders in multi-occupancy buildings;
• Reviewing planning regulation to ensure that the rollout of EV infrastructure is not unduly delayed by out-dated regulation;
• Consulting on mandating workplaces with designated car parking spaces to install EV charge points.

And the committee is calling for industry support, such as enhancing UK manufacturing and battery innovation and accelerating investment in UK vehicle and battery recycling facilities.

However, committee members did welcome the ZEV mandate on manufacturers, recent investment in the UK car manufacturing industry, plus the new charge point regulations and the initial support for local authorities, including the Local Electric Vehicle Infrastructure (LEVI) fund.

Baroness Parminter, chair of the inquiry, said: “Surface transport is the UK’s highest-emitting sector for CO2, with passenger cars responsible for over half those emissions. The evidence we received shows the Government must do more – and quickly – to get people to adopt EVs. If it fails to heed our recommendations the UK won’t reap the significant benefits of better air quality and will lag in the slow lane for tackling climate change.”

An ‘important and far-reaching report’

The RAC said it was an “important and far-reaching report” and urged the Government to take the recommendations seriously.

RAC head of policy Simon Williams said: “We have long argued that mass uptake of EVs – which is the Government’s aim – depends on prices falling to make them the natural choice for more people, so we are particularly pleased to see the Committee supporting the introduction of targeted grants for new electric cars, aimed at the more affordable end of the market.

“We believe the UK was too hasty in scrapping the Plug-in Car Grant as it did lead to more lower-priced models being introduced. Without further financial support, it will be a long time before the majority of drivers will be able to afford to make the switch to electric.

“The Committee rightly acknowledges the important role the 2023 Public Charge Point Regulations will play in ensuring drivers benefit from good quality public charging infrastructure in the future, and we’re pleased to see its suggestion that elements of the UK’s first Public Charging Charter – which we developed alongside the FairCharge campaign – could form the basis of a future review of them.

“The unequivocal support for VAT to be charged at the same 5% rate whether a driver is charging at home or at a public charger also now piles yet more pressure on the Treasury to correct this bizarre anomaly. As things stand, the current mismatched VAT rates are an unnecessary barrier to switching to an electric car for the estimated third of people who can’t charge an EV at home and who wholly rely on the public charging network.

“We very much look forward to the Government’s response to this report and its explanation of what else it is going to do to ensure as many drivers are able to benefit from running an electric car as possible.”

Commenting on the report, a DfT spokesperson said: “After more than a decade of Government grants and tax incentives, the number of electric cars on our roads has significantly increased, with over a million now on UK roads.

“We are continuing to support the switch to electric with more than £2bn, seeing a 45% increase in public charge points since January last year, putting us on track to install 300,000 public charge points by 2030. This week alone we have made charge points more accessible, with the first councils starting to receive part of the £381m Local Electric Vehicle Infrastructure (LEVI) Fund alongside new grants to install charge points in state schools and nurseries.”

Consumer watchdog Which? also commented on the report, following its research published this month showing that two-thirds of EV drivers are unhappy with the public charging network.

Sue Davies, Which? head of consumer protection policy, said: “We know that consumers want to play their part in helping tackle climate change, but they face a number of barriers holding them back from purchasing electric vehicles.

“Our research previously found that the upfront cost of buying an electric vehicle is a major barrier preventing drivers from considering one – and many drivers have a lack of confidence in the public charging infrastructure.

“It is positive that the Government passed new rules that should see improvements in consumers’ experiences of the public charging network. The Government and charge point operators must continue working together to ensure the UK’s charging infrastructure is up to scratch. Charging must be easy and reliable to support more people to make the move to an electric car.”

And James Court, chief executive of EVA England, said: “EVA England has been calling on the Government to improve both access to and infrastructure for EVs across the UK, and we are glad to see that today’s report shows we are being heard. It is essential that the Government legislate to tackle the disparity in cost between EVs and petrol cars, and that charge point infrastructure is fairly priced and easily accessible. The report makes strong policy recommendations to achieve both of these essential goals, and EVA England supports these and encourages the Government to implement without delay.”

The report is available on the House of Lords committee website here.