The UK government has announced a significant increase in its financial support for electric vehicle (EV) charging infrastructure, raising grants for workplace chargers from £350 to £500 per socket. The Office for Zero Emission Vehicles (OZEV) has extended this funding for another year, aiming to encourage more businesses and organizations to transition to electric fleets.

Impact on Workplace Charging Infrastructure

Since its launch in 2016, the Workplace Charging Scheme has funded over 65,000 charging sockets in employer car parks. Of these, more than 7,568 were installed in the 12 months ending 1 October 2025. The new grant, which increases by 43%, will apply to all new installations completed from 1 April 2026, even for applications submitted prior to the update. The funding covers up to 75% of the total cost, including installation.

The grant increase is expected to cover approximately half the cost of installing a new EV charging point. This change aims to reduce the financial burden on businesses and organizations seeking to adopt EVs for their fleets or staff.

The deadline for applications has also been extended to 31 March 2027, allowing more time for businesses to apply for funding. The Workplace Charging Scheme is open to a wide range of entities, including businesses, charities, public sector organizations, and accommodation providers such as hotels and campsites, provided they have fewer than 250 employees.

Changes to the Staff and Fleets Grant Scheme

As part of the OZEV’s latest reforms, the Staff and Fleets Grant scheme, which provided up to £15,000 to small and medium-sized enterprises, will be withdrawn on 31 March 2026. However, many of these businesses may still be eligible for the Workplace Charging Scheme, which offers a more flexible and extended grant opportunity.

Tina McKenzie, policy chair at the Federation of Small Businesses, welcomed the changes. She noted that 51% of small businesses said additional charging infrastructure would encourage them to switch to EVs. ‘Removing or lowering the barriers which currently tip the scales against electric vehicle adoption can only be a good thing for small businesses, the economy, and the planet,’ she said.

Businesses can also benefit from additional tax incentives. They can deduct 100% of the cost of EV chargers from their gross profits, reducing their tax bill. Employees can also use EV charging without the costs being treated as taxable benefits, even if they are passengers in a carpool.

Support for Home Charging and Tax Exemptions

The higher grant rate also applies to home chargers, benefiting fleets that cover the installation costs for drivers. However, eligibility is limited to flats, rented accommodation, and on-street parking. Drivers who own a house with a driveway or garage do not qualify for the grant.

Home charging installations are exempt from benefit-in-kind tax, but the funding is only available for certain types of housing. This change aims to support those who may not have the means to install a charger at home, thereby increasing overall EV adoption rates.

The OZEV has emphasized that the reforms are part of a broader strategy to accelerate the transition to zero-emission vehicles. The government has set a target of banning the sale of new petrol and diesel cars by 2030, and these funding changes are intended to support that goal.

With the deadline for applications now extended to 2027, businesses have more time to plan and apply for the grants. The increased funding is expected to have a significant impact on the adoption of EVs across various sectors, including small businesses, the public sector, and hospitality industries.

As the UK moves toward a more sustainable transportation system, these changes are likely to play a crucial role in shaping the future of electric vehicle adoption and infrastructure development in the country.