Uncertainty over EV policy dents driver confidence to switch
23 December 2025
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Natalie Middleton
Growing political and policy uncertainty is putting the brakes on drivers’ willingness to switch to electric vehicles, according to the latest AA UK EV Readiness Index. The European
Growing political and policy uncertainty is putting the brakes on drivers’ willingness to switch to electric vehicles, according to the latest AA UK EV Readiness Index.
Conditions that support drivers’ shift to EVs remain challenging for many
This uncertainty is compounded by concerns over the proposed eVED scheme, which would see electric car owners paying a new tax based on annual mileage from April 2028.
The AA said the intention to ensure EVs contribute to road maintenance was “understandable”, but warned that the timing and lack of clarity on the new EV pay-per-mile tax risk deterring some drivers who were considering making the switch.
Edmund King, AA president, said: “If the UK is serious about accelerating EV adoption, 2026 must bring stronger, clearer guidance and meaningful incentives.”
Despite a modest rise in the overall EV readiness score to 48.8 (up from 47.3 last quarter), conditions to adopt an EV remain fragile.
EV insurance prices have fallen but some research indicates that used EVs have become more expensive relative to petrol and diesel cars, and a small uptick in ‘out of charge’ breakdowns due to colder weather has added to consumer nervousness.
Edmund King went on: “Drivers are being buffeted by mixed messages and policy reversals. Talk of the ZEV mandate being scrapped or delayed, and the introduction of new taxes on EVs, risks undermining years of progress. Those already on the fence may now be stepping back to the familiar territory of petrol or diesel, rather than embracing the switch to electric.
“Whilst the index shows some progress, the conditions that support drivers’ shift to EVs remain challenging for many.
“The drop in EV insurance pricing at a slightly faster rate than for ICE insurance is great news for consumers, but there are wider concerns about used car pricing, where most private sales occur.
“If the UK is serious about accelerating EV adoption, 2026 must bring stronger, clearer guidance and meaningful incentives. Only then will we see real momentum and confidence among drivers to make the change.”