Business case for switching to electric vehicles boosted by charger grant increasing from £350 to £500
The UK government’s Office for Zero Emission Vehicles (OZEV) has overhauled and extended its EV grants for another year, including a 43% increase in the funding available for workplace chargers from 1 April 2026 to £500 per socket.
According to the latest data, the Workplace Charging Scheme had funded more than 65,000 charging sockets in employers’ car parks since it launched in 2016, with one in eight (7568) of those installed during the 12 months to 1 October 2025.
From 1 April 2026, the maximum funding level will be increased from £350 to £500 per socket, capped at 75% of the total cost including installation work.
That rate applies to all new installations completed from that date, even if fleets applied before the changes took effect, and could cover around half of the cost, the OZEV said.
The deadline for applications has also been extended to 31 March 2027.
The Workplace Charging Scheme is open to businesses, charities, public sector organisations and accommodation providers (such as hotels and campsites) with fewer than 250 employees.
Applicants can claim funding for up to 40 sockets spread over as many locations as they like and can apply in multiple rounds if needed. Funding on a per-socket basis means units that can charge two EVs simultaneously qualify twice.
The main restrictions are that installations must be in parking spaces “clearly associated” with the workplace and be available to staff rather than customers, and that applicants must either own the spaces or have the landlord’s permission.
Meanwhile, the separate Staff and Fleets Grant scheme, which offers up to £15,000 for small to medium-sized enterprises (businesses with fewer than 250 employees), will be withdrawn on 31 March as part of the OZEV’s latest reforms.
Many of them would still be eligible for the Workplace Charging Scheme, however.
Tina McKenzie, policy chair at the Federation of Small Businesses said: “Many small businesses want to switch to electric vehicles, with 51% of small businesses saying that more charging infrastructure would incentivise them to make the switch.
“Small firms want to cut their emissions and reduce their fuel bills, and removing or lowering the barriers which currently tip the scales against electric vehicle adoption can only be a good thing – for small businesses, for the economy and for the planet.”
Alongside grant funding, businesses can deduct 100% of the cost of EV chargers from their gross profits, which reduces their tax bill, and allow employees to plug in for free without the charging costs being classed as a taxable benefit. That includes carpools in which the employee is a passenger, even if the driver works elsewhere.
The higher grant rate also applies to home chargers, which benefits fleets who cover the cost of installing them for drivers.
Those installations are exempt from benefit-in-kind tax, but funding is available only for flats, rented accommodation and on-street parking; drivers who own a house with a driveway or garage don’t qualify.
