European clean transport policy group Transport & Environment has called for a “social leasing” plan to open battery-electric vehicle access (BEV) to lower-income households.
Through its No one left behind report, the group calls for funding the plan from larger, heavier and more expensive SUVs, which would be given a ‘Large Vehicle Levy’, alongside portions of the existing Electric Car Grant budget.
It would use the cash to create a subsidised EV leasing model for low-income households, bridging the gap to the cheapest EVs on the market – currently around £140 a month – enabling those who typically spend less than £100 a month on car purchases or leasing. This would then deliver a social leasing model for such households, creating a lease for an EV as little as £77 a month – on a secure eight-year subsidised deal.
In addition, the report proposed a bundled lease option for those such as key workers or rural residents who needed cars for essential transport. For a predictable monthly payment of as low as £222, this comprehensive package covers the car, insurance, maintenance, and charging costs.
Also suggested was a scrappage-for-leasing discount, which allows drivers to trade in older petrol or diesel cars for a £2,000 bonus, and is applied as a monthly discount on a new BEV lease. This could bring lease costs down to just £156 a month for any household, or £56 a month if the driver also qualifies for the pure social leasing scheme.
It added that international examples have shown the approach can be “highly effective”, it said. France launched its social leasing initiative in December 2023, the scheme was met with immediate enthusiasm. While initial funding was planned for 25,000 vehicles, 90,000 households applied in just a month and a half, “proving that lower-income drivers are eager to transition to zero-emission mobility when the right incentives are in place”, it said.
Eloise Sacares, Senior Researcher in UK Vehicles Policy at T&E UK said:
“Social leasing is the perfect next step for the UK’s EV transition. While the mandate is successfully driving supply of better and cheaper EVs, we need to ensure that those on low incomes who need a car can access an affordable EV. Currently, with the cheapest EV lease at £141 a month, those on low incomes are priced out and unable to benefit from lower running costs. By bringing leasing costs down to as low as £77 a month, we can ensure that EVs are accessible and reduce bills for all.
“The best thing about social leasing for electric vehicles is that it can be sustainably funded by a new Large Vehicle Levy on large SUVs. This could fund 179,000 households a year to take part in the scheme all the while reducing air pollution, and household bills.“
Vicky Edmonds, CEO of EVA England, said:
“The driver is central to a sustainable transition to electric – if we can make electric vehicles more affordable, we can persuade more households that these cars will work for them.
“That is why EVA England is pleased to partner with T&E on this important study. It shines a light on the factors that will bring EVs into a price bracket that the majority of families can access, and on the steps that Government and industry can take to make sure that driving electric can become a reality for all of us, no matter our personal circumstances.”
Image courtesy of Green Car Guide
