LONDON, July 13, 2025
The government is poised to announce measures to make electric cars more affordable, aiming to boost adoption rates among drivers. Transport Secretary Heidi Alexander indicated that specific details would be revealed later this week, following reports of potential substantial government grants for EV purchases.
The government plans to make electric cars cheaper for consumers.
Government hints at EV cost reductions
Alexander confirmed that the administration would be introducing new initiatives to lower the cost of electric vehicles (EVs) for those looking to switch. However, she declined to confirm specific reports suggesting the government would offer thousands of pounds in grants to reduce the upfront purchase price.
When pressed on whether the plans involved hundreds of millions of pounds in EV grants, Alexander stated, “I can guarantee to your viewers that we will be making it cheaper for those who do want to make the switch to an electric vehicle.” The Department for Transport provided no further comment.
Earlier, Alexander had acknowledged that the high cost of EVs was a barrier for many consumers. She remarked that it was “right that the government thinks in the round about what we can do to tackle both of the issues, on charging and on the upfront cost of purchase.”
The Conservative opposition, through Richard Fuller MP, shadow Chief Secretary to the Treasury, criticized the approach, accusing the government of “forcing families into more expensive electric vehicles before the country was ready.”
Addressing charging infrastructure
In related developments, it was announced on Sunday that individuals without driveways will be able to have charging points installed using “cross-pavement gullies.” This initiative is backed by £25 million allocated to local councils.
The government also revealed a £63 million investment to enhance charging infrastructure across the United Kingdom. Larger EV charging hubs will be clearly signposted from major A-roads to improve ease of access for drivers, according to Alexander.
- Government to announce measures making EVs cheaper.
- Specifics on potential grants remain unconfirmed.
- £25 million allocated for charging points for those without driveways.
- £63 million invested in UK charging infrastructure.
- EV sales lag behind mandated targets.
Alexander herself noted that she does not currently own an electric car, living in a terraced house without a driveway. She shared, “I don’t have an electric car… like millions of people in this country – I bought a new car about six years ago, I’m thinking about the next car that I will purchase and it will definitely be an electric vehicle.”
EV market dynamics and targets
The average price of a new EV in the UK stands at approximately £22,000, nearly double the cost of a comparable petrol car. However, some Chinese-manufactured electric cars are entering the UK market with prices as low as £18,000.
Electric vehicles accounted for about a fifth of new car sales in the first half of the year, according to the latest figures from the UK motor trade association, the SMMT. Despite this, sales are still falling short of the targets set for manufacturers, with the ban on new petrol and diesel car sales scheduled for 2030.
In April, Alexander announced that manufacturers would receive greater flexibility regarding their annual sales targets and face reduced fines, allowing them to better manage the impact of trade tariffs from the United States.
Access to charging points is widely considered a significant factor hindering EV sales. The President of the AA, Edmund King, described the infrastructure improvements as “vital” for building consumer confidence in the transition to electric vehicles.
