A grant scheme specifically for second-hand EVs must be the next step in Britain’s transition to a fully electric future.

The Government cancelled the £1,500 plug-in car grant (PiCG) earlier this month, with immediate effect. The move marks the end of one of the cornerstones of Government policy aimed at encouraging the initial take-up of electric vehicles (EVs). The grant was applied to over 500,000 vehicles and helped drastically increase sales of EVs in the UK. The scheme was a resounding success and is partly responsible for the strides towards full electrification made over the last decade.

The conclusion of the PiCG scheme was inevitable, as the UK enters a new phase in its transition to electric vehicles. The increasing number of EVs sold means it was becoming increasingly expensive for the treasury. Moreover, demand for EVs is skyrocketing with waiting lists for most electric cars.

However, it is essential the Government continues to support motorists looking to make the switch to EVs – especially car dependent families who rack up high annual mileage.

According to Ben Nelmes, Head of Policy at New AutoMotive;

“With the cost of petrol and diesel constantly rising, EVs can help lower the cost of living for British families, whilst also helping ensure the country stays on track to achieve its goal of net-zero by 2050.”

“In place of the PiCG, the Government should implement an interest-free loan scheme aimed at helping car-dependent families who drive the most miles purchase second hand EVs.”

“This scheme would not only help relieve cost-of-living pressures on these families who are struggling with fuel price rises, but also facilitate a quicker transition away from petrol and diesel cars.”

Current trends indicate EVs will become the dominant market segment of sales with or without subsidy in the next 1-2 years, as they reach price parity with ICE vehicles across all segments of the car market and continue to offer lower costs over the lifetime of a vehicle. The UK’s transition to electric vehicles is rapidly building pace, driven by public appetite for EVs and the superior value they offer over ICE vehicles.

Given this, the Government may be tempted to see the end of the PiCG as symbolising the transition outgrowing the need for the state to provide financial assistance to first time EV buyers, and view a zero-percentage interest loan scheme to support the purchase of second-hand EVs as unnecessary. However, such a scheme would facilitate a quicker transition away from ICE vehicles, whilst also helping to relieve cost-of-living pressures on car dependent families.

The massive savings offered by EVs compared to ICE alternatives are here to stay. Even after the conclusion of the conflict in Ukraine, downstream elements of the oil and gas industry are likely to seek to maintain revenue, keeping petrol and diesel costs high. EVs will continue to be exponentially cheaper to run than ICE vehicles.

A scheme specifically for second-hand EVs would help make the long-term savings EVs offer more accessible to a broader range of Britons. It would function as a policy with a dual purpose – helping the country achieve its goals of net zero by 2050 and making the savings offered by EVs accessible to families hardest hit by the current cost-of-living crisis.

Given these factors, it must be the next step the Government takes in Britain’s journey to a fully electric future.