UK EV Policy Update October 2025: Grants, VED and Charging Rules for Fleets

The UK’s electric-vehicle policy landscape is shifting fast. This month brings new mandates on charging reliability, renewed debates on taxation, and clearer rules on which models remain eligible for the government grant. Here’s your fleet-first breakdown, what’s new, what’s changing, and what you must act on now.

1. Charging networks now legally bound to 99% uptime

Since late 2024, every public charging network in the UK must maintain 99 per cent uptime on its rapid chargers. Yet only a small fraction meet this in practice — about four per cent by the latest industry data.

Why this matters:

When a driver can’t charge, the vehicle sits idle. That means missed jobs, schedule disruption and hidden costs. Under the revised rules, operators failing to hit 99% reliability must publish performance metrics and may face enforcement over repeated breaches.

Fleet action:

Start logging which charger networks your drivers use and their failure rates. If 10% of your attempted charges fail, your real cost per mile is higher than your spreadsheet suggests. To mitigate risk, dual-source between at least two major networks or accelerate investment in private charging at depots. For network growth context and TCO signals, see our data brief UK Charging Growth & EV Registrations: TCO Signals for Fleets.

2. Sign-posted charging sites must upgrade services — or lose visibility

A new Department for Transport proposal states that only sites with a minimum set of amenities (toilets, hot food, free two-hour parking) will be permitted to display the official “EV charging” road sign on motorways and A-roads.

It may sound trivial, but many smaller hubs lack those features today. Once the rule is enforced, some otherwise decent chargers could vanish from highway signage overnight.

Fleet action:

Design routes using raw location and availability data (not just road signage). Some chargers may drop off signs even if they remain physically usable.

3. Open-data mandates now enforce transparency

From this autumn, all charge-point operators must publish standardised open data on pricing, availability and location. That’s more than technical hygiene, it unlocks real-time connectivity for fleet tools.

Fleet action:

Ask your telematics, routing or charging platform providers when they will integrate the new open-data feeds. Once integrated, drivers should see, in real time, which chargers are up, what they cost, and whether they’re free.

4. Electric Car Grant (ECG): still around, but with caveats

The UK’s £650 million Electric Car Grant continues, but it’s tighter than before:

• Only EVs with a list price under £37,000 qualify

• Grant amounts: £3,750 for the greenest (Band 1); £1,500 for the rest (Band 2)

• Some new models (e.g. Ford Puma Gen-E, E-Tourneo Courier) have joined the eligible list

  Critics argue the sustainability scoring penalises automakers reluctant to share supply-chain data. And fleets warn that higher-spec trims frequently push models over the £37k cap, nullifying the grant.

  Fleet action: Before quoting a lease, double-check the model’s exact trim & price. That extra £1,500–£3,750 can swing your business case. Watch optional extras, they might push a vehicle just past the threshold.

5. VED changes and the “expensive-car” trap at £40,000

As of 1 April 2025, EVs pay £10 in year one, then £195 annually from year two onward. EVs priced above £40,000 also incur the Expensive Car Supplement — £425 per year for years 2–6 (≈£2,125 over five years). For London specifics and budgeting scenarios as we head into 2026, read London CC & ULEZ 2025: Key Dates.

Fleet action:

Reassess your ordering thresholds. Many SUVs that used to sit just under £40k now exceed it thanks to inflation and upgraded specs. In practice, the supplement adds ~£8–10/month to a 5-year lease, small individually, meaningful across a fleet.

6. Pay-per-mile tax proposals make a comeback

The Treasury is modelling road-pricing or weight-based EV taxes to replace lost fuel-duty revenue. No commitment yet, but a pay-per-mile pilot is being discussed following the 2025 Autumn Budget.

Fleet action:

Model a 2p/mile charge scenario (~£400/year on a 20,000-mile driver). It’s similar in scale to the VED supplement. Keep 2026 budgets flexible and track Budget announcements.

7. HMRC’s split reimbursement rates: new guidance arrives

From 1 September 2025, HMRC introduced a dual Advisory Electricity Rate: 8p/mile (home) and 14p/mile (public). The split reflects real charging-cost differences. HMRC has since clarified how to apportion mixed journeys (home + public) “fairly and reasonably”. For the background and correction timeline, see HMRC Fixes the New Advisory Electricity Rates.

Fleet action:

Update your mileage policy to reflect the two-tier structure. For mixed journeys, define and document apportionment rules (e.g., by estimated kWh split). Consider a public-charging uplift or prioritise workplace charging for staff without home access.

8. Big-picture takeaways: tightening, not loosening

• Infrastructure regulation is tightening : more transparency, higher uptime, stricter signage standards

• Fiscal advantages are narrowing : grants persist, but tax gaps shrink

• What’s next? Usage-based taxation, regional infrastructure equity, evolving reimbursement rules

  Now is the moment to act:

  1) Data readiness : ensure systems can ingest new open-data and reliability metrics.

  2) Threshold diligence : scrutinise every EV order around £37k / £40k before signing.

  Stay nimble. The next policy ripple is already forming.