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Comment: EV funding is a step in the right direction, but challenges remain

  • 15 July 2025
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By Ross Palman, project lead – EV at Holman The latest wave of government funding for EVs and infrastructure is a step in the right direction, but it’s

Comment: EV funding is a step in the right direction, but challenges remain

By Ross Palman, project lead – EV at Holman

Ross Palman, project lead – EV at Holman

The latest wave of government funding for EVs and infrastructure is a step in the right direction, but it’s clear there’s still a long road ahead.

The new workplace and depot charging fund looks encouraging, especially with the potential to claim up to £15k per site on top of the existing £350 per socket (up to £14k). This site-based approach makes sense for fleet operators, but the reality is that even £15k doesn’t go far when installing robust commercial-grade infrastructure.

The £640-700m set aside to support EV purchases is more substantial, and it’s great to see something tangible. The previous plug-in grant worked well. But let’s be balanced: EV sales are already at 21.8%, and factoring in manufacturer credit trading, that aligns with this year’s 22% ZEV mandate target. So this may be more about maintaining momentum than accelerating it.

More pressing is support for the used EV market, where supply, weak residuals and poor demand continue to hold things back. Incentives here could make a real difference.

A stand-out win is the £25m for cross-pavement charging. With 40% of UK drivers lacking off-street parking, this is essential. However, the current fragmented local authority approval system – around 382 councils, each with their own rules – could slow things down significantly.

The NHS fleet initiative is promising, especially with sustainability targets already in place across its supply chain. Charging signage is another welcome move to normalise EVs for non-drivers and improve visibility.

Finally, the DRIVE35 programme brings serious funding potential – but let’s hope it avoids the slow and inconsistent rollout we saw with the LEVI fund.

Looking ahead, targeted support for large vans, second-hand EVs and public charging VAT reductions could be the missing pieces in making electrification truly viable for all.

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