EVDC Policy Pulse (UK)
The latest UK EV policy changes that directly impact your fleet costs in August 2025
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).