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EVDC Policy Pulse (UK)

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EVDC Policy Pulse (UK)

What’s new that actually moves your numbers?

1) Electric Car Grant: 17 models live, all at £1,500 (for now)

The government’s Electric Car Grant is up and running. As of this week, 17 models are officially approved : all on the £1,500 tier, with the higher £3,750 band still to be populated.

The cap is £37,000 list price and approvals are being updated centrally. Action: pressure-test your next procurements against the list and re-price leases accordingly.

2) VAT gap on charging costs remains

Public charging is still 20% VAT versus 5% at home. Industry analysis suggests this adds around £85m in 2025 across UK EV drivers, rising toward £315m by 2030, a meaningful bias against drivers without driveways.

Policy tip: keep mileage reimbursements aligned to HMRC AER 7p/mile and consider a public-charging uplift where drivers cannot charge at home.

On your radar

  • VED for EVs is now in force: £10 year one, then £195 standard (plus supplement over £40k). Make sure your WLC models reflect it.

  • Tesla has applied to Ofgem to supply electricity. If approved, expect fresh smart-tariff options for EV/solar/storage fleets.

Quick wins this week

  • Re-run your shortlist against the ECG list; renegotiate lease quotes that didn’t price the £1,500.

  • Formalise a “Public Charging Uplift” in your policy (document the trigger and rate).

  • Update WLC templates with VED 2025 and keep AER 7p in your ppm baseline.

Do it now

Model the impact on your fleet in minutes with the Fleet-Savings calculator (UK) and see our UK methodology for full assumptions and sources. (Fleet-Savings, Methodology, WLC vs TCO guide).

Related reading

More fleet electrification analysis curated for this topic.