Breaking Down the UK’s Latest EV Funding Announcements

Following the UK Government’s announcement of new measures aimed at accelerating the transition to electric vehicles (EVs), including depot chargepoint grants and a £2.5bn investment package under the DRIVE35 programme, there’s a lot to digest.

We’ve broken down the key updates, with insights from our EV Product Lead, Ross Palman, to help fleets understand what this means in practice.

• Depot Charging Grant

The newly announced depot charging grant appears to offer an additional £15,000 per depot, on top of the existing £350 per socket (capped at £14,000 for 40 sockets). This shift toward a site-based funding model is encouraging as it recognises the complexity of depot infrastructure projects.

However, while the headline figure sounds generous, in practice, it may still fall short of covering the true costs of large-scale electrification (especially for operators with multiple sites or extensive grid upgrade requirements).

• Support for EV Procurement

The Government has earmarked up to £700m to support EV procurement. This could help maintain momentum at a time when EV sales already sit at 21.8%, close to the 2025 target of 22%.

Still, we believe more targeted support is needed for the used EV market, where residual value (RV) concerns, rising insurance costs, and inconsistent supply remain a barrier to TCO optimisation for fleets.

• £25m for Cross-Pavement Charging

With around 40% of UK drivers without access to off-street parking, the £25m cross-pavement charging initiative is essential for equitable EV uptake. But the current system where each of the 382 local councils must approve specific products (eg. Kerbo Charge, Gul-e, Charge Gully, etc.), creates a fragmented and slow rollout. The funding is a good start, but streamlining approvals will be key to real impact.

• DRIVE35 Programme

The £2.5 billion DRIVE35 programme is a 10-year commitment to support UK automotive innovation, manufacturing, and supply chains. It aims to:

• Support ZEV and battery production
• Fund R&D and innovation
• Create and safeguard jobs
• Strengthen the UK’s global EV leadership

It’s a bold commitment! But as we’ve seen with the LEVI fund, big numbers don’t always translate into fast or consistent delivery. We’ll be watching closely to see how this funding is deployed, and how quickly.

• What’s Still Missing?

While this announcement is a massive step in the right direction, we’d still like to see:

• Support for large vans (e.g., MOT exemptions, tacho rules)
• Public charging VAT reduction
• Incentives for the second-hand EV market

Conclusion

The Government’s latest EV funding announcements are a welcome boost for the industry, especially for fleets navigating their transition to zero-emission vehicles. From depot charging support to the ambitious DRIVE35 programme, there’s plenty to be optimistic about.

However, funding alone won’t solve infrastructure gaps, used EV market challenges, or the need for regulatory clarity around larger vans and public charging.

Whether you’re evaluating EV options, looking to optimise your fleet’s sustainability strategy, or just trying to make sense of it all, we’re here to help.