The government will unveil plans this week to make electric vehicles more affordable for British drivers, Transport Secretary Heidi Alexander confirmed on Sunday, though she declined to specify whether this would involve millions of pounds in direct grants.
Speaking on BBC’s Sunday with Laura Kuenssberg, Alexander promised announcements “later this week on how we make it more affordable for people to buy an electric vehicle.” The pledge comes as the government announced a £63 million investment package to boost charging infrastructure across the UK.
However, neither Alexander nor the Department for Transport would explicitly confirm Telegraph reports suggesting the government will offer drivers thousands of pounds in grants to cut EV purchase prices. When pressed on whether this would involve hundreds of millions in grants, Alexander refused to provide details.
Promise to Cut Costs
“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,” Alexander told the programme. The Transport Secretary acknowledged that high upfront costs were deterring potential buyers.
The average price of a new electric vehicle in the UK stands at nearly £50,000, more than double the typical £22,000 cost of a petrol car. However, some Chinese-made electric cars are beginning to enter the UK market at prices as low as £18,000.
Richard Fuller MP, shadow Chief Secretary to the Treasury, accused Labour of “forcing families into more expensive electric vehicles before the country is ready.” The Conservative response highlighted concerns about the pace of transition and infrastructure readiness.
Infrastructure Investment
The government unveiled a £63 million package specifically targeting charging infrastructure barriers. A key element includes £25 million for councils to install “cross-pavement gullies” enabling residents without driveways to access home charging.
This initiative addresses a critical gap, as approximately 40 per cent of UK households lack off-street parking. The cross-pavement solution will allow cables to run safely from homes to kerbside parking spaces.
Alexander revealed she does not own an electric vehicle herself, citing her terraced house without a driveway as a barrier. 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,” she said.
Charging Network Expansion
The investment package includes funding for over 1,200 new charging sockets at NHS sites across England. Officials estimate this will generate millions in cost savings over two decades through reduced maintenance and fuel costs.
Major A-roads will feature new signage directing drivers to larger EV charging hubs. The government aims to transition from “range anxiety” to “range awareness” by improving visibility of charging infrastructure.
A new grant scheme will help businesses install charging points at depots nationwide, supporting the transition of heavy goods vehicles, vans and coaches to zero emissions. The freight and logistics sector employs over 1.2 million people in the UK.
Sales Remain Below Targets
Electric vehicles represented around a fifth of new car sales during the first half of 2025, according to the Society of Motor Manufacturers and Traders (SMMT). However, sales remain below mandated targets manufacturers must meet ahead of the 2030 ban on new petrol and diesel cars.
In April, Alexander announced manufacturers would receive more flexibility on annual targets and face lower fines. This adjustment aims to help them manage the impact of potential trade tariffs from the United States.
Access to charging points remains a significant barrier to EV adoption. Industry experts cite this infrastructure gap as a key factor holding back sales growth despite increasing model availability.
Previous Grant History
The UK previously offered consumer grants of £1,500 off new electric car purchases until 2022. Ministers withdrew the scheme claiming it had “successfully kickstarted the UK’s electric car revolution.”
Since then, grants have only been available for vans, taxis, trucks and motorbikes. The government recently extended the plug-in van grant for another year, offering up to £2,500 for small vans and £5,000 for larger vehicles.
Fleet purchases rather than private consumer demand have increasingly driven EV sales growth. The taxpayer-funded Motability Scheme, which leases cars to people receiving disability benefits, represents one of the major fleet buyers.
Industry Response
AA President Edmund King welcomed moves to improve charging infrastructure, calling them “vital” for creating confidence in the transition to EVs. He emphasised the importance of accessibility and reliability in the charging network.
“The more green plates and electric cars you see, it helps you realise that there are a lot more of them than you initially thought,” King noted, highlighting how visibility drives adoption.
Industry figures show over 1.5 million EVs currently on UK roads, compared with 19.2 million petrol and 11 million diesel vehicles. This represents significant growth but highlights the scale of transition required.
Political Tensions
The announcement comes amid broader political tensions over transport policy. Shadow Treasury Chief Secretary Richard Fuller claimed the transport schemes were designed to distract from “the woes of the Chancellor.
Fuller warned of “huge uncertainty” for businesses and individuals, suggesting the government would raise taxes in October. He criticised the timing of infrastructure announcements as politically motivated.
The Conservative opposition maintains that Labour is pushing families towards expensive electric vehicles prematurely. They argue the country lacks sufficient infrastructure to support rapid transition.
Looking Forward
Alexander told the Telegraph: “We do know that the high upfront purchase cost of EVs is something that people are wary about. I think we’ve got to be honest and say there are a lot of people out there who think that EVs are just for the very wealthiest.”
The Transport Secretary emphasised the need to address both charging infrastructure and purchase costs simultaneously. “It’s right that the Government thinks in the round about what we can do to tackle both of the issues,” she said.
With detailed announcements expected later this week, the automotive industry awaits clarity on how the government plans to bridge the affordability gap. The success of the 2030 transition depends heavily on making electric vehicles accessible to mainstream consumers.
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