Government Announces £120 Million Investment to Accelerate Electric Vehicle Adoption
London, UK – The UK government is expanding its support for electric vehicles (EVs) with a new £120 million funding package designed to accelerate the transition to cleaner transportation options. The investment, announced on February 25, 2025, will provide financial incentives and address existing barriers to adoption for a range of vehicle types.
Future of Roads Minister Lilian Greenwood confirmed the extension of the Plug-in van grant for another year. This offers grants of up to £2,500 for smaller vans (up to 2.5 tonnes) and up to £5,000 for larger vans (up to 4.25 tonnes). The Plug-in van grant has successfully supported the sale of over 80,000 electric and zero-emission vans since its inception.
To further simplify the transition, the government is eliminating the requirement for additional training for zero-emission vans, which are often heavier than their petrol and diesel equivalents. This initiative is intended to reduce costs and streamline the hiring process for businesses operating electric vans.
“From van drivers and businesses, to drivers with accessibility needs, bikers and cabbies, today we are making it easier, faster and cheaper for people to switch to electric vehicles,” stated Future of Roads Minister Lilian Greenwood. “By making the transition to zero emissions a success, we’re helping to drive growth all over the UK, putting more money in people’s pockets and rebuilding Britain to deliver our Plan for Change.”
The department is also extending its support for taxi drivers, making £4,000 available for those who choose to purchase zero emission black cabs, among other models. Simultaneously, the Plug-in wheelchair accessible vehicle grant cap will increase from £35,000 to £50,000, offering disabled passengers a wider selection of vehicle models. Furthermore, bikers will continue to benefit from a £500 grant for electric motorbikes, also extended for another year.
This new funding is part of a larger £2.3 billion commitment designed to foster a transition to EVs. The government highlighted the economic benefits of this shift, emphasizing the creation of high-paying jobs and support for businesses across the country.
The government is also actively engaging with car manufacturers to facilitate the transition to EVs. A recent consultation with the industry sought feedback on restoring the 2030 phase-out date for new petrol and diesel cars, underscoring the government’s continued commitment to a cleaner transport future.
The government also pointed out that in 2024 over 382,000 electric cars were sold – a rise of one-fifth compared to the previous year. The average range of a new electric car is now 236 miles – that’s about 2 weeks of driving for most people – while emitting significantly fewer greenhouse gases than petrol cars.
The investment also seeks to expand charging infrastructure.
With over 74,000 public chargers already available in the UK, and nearly 20,000 added last year alone, and a further £200 million announced in the recent budget for chargepoint rollout, the network is set to expand significantly in the coming years.
