Lower-income households risk being left behind in the UK’s transition to electric vehicles (EVs), according to a new report from Autotrader.
The report, called No Driver Left Behind 2026, states that a structural divide in who benefits from cheaper running costs and cleaner local air could result from such households not benefitting from the EV transition.
It found that households earning below £40,000 remain significantly less likely to consider an EV than higher-income households. The study identifies affordability and lack of awareness as the primary barriers to adoption.
The report also follows a Budget with proposals for a new pay-per-mile road tax adding to running costs. Nearly half of drivers (47%) said they were less likely to go electric following the Budget, compared to one third (34%) unchanged in views.
Only 48% of households earning under £40,000 would consider an EV for their next car, compared with 84% among those earning above that threshold.
It comes despite 70% of lower income households having a driveway, suggesting off-street parking is not the clear-cut indicator of electric consideration, or likelihood to buy, as previously thought.
For those who can charge at home, average annual running cost savings could reach £1,500, while drivers without this option face structurally high energy prices. Despite these potential savings, the new data shows many buyers with driveways may never get to the test-drive stage due to other factors.
Almost two fifths of lower-income households buy cars priced £5,000 or less, yet just 1% of used EVs fall in that bracket today.
Research also found that certain demographics within the lower household income group were more likely to consider electric, for example younger people and those living in urban environments.
Chief Customer Officer at Autotrader, Ian Plummer, said:
“We’re at a pivotal moment for the UK’s EV transition but there is still a lingering wealth divide. This new data also busts the myth that those who can charge at home will definitely switch – the driveway divide is no longer so clear cut. If lower income households can’t access affordable vehicles, we risk creating a two-tier system where the benefits of cleaner, cheaper motoring accrue to those already better off.
“The path forward is clear: more choice at lower price points, greater transparency on battery health metrics, and practical charging solutions for people without driveways. Do that, and we unlock EVs for everyone – not just the few.”
Vicky Read, Chief Executive, ChargeUK, said:
“For the majority of people, charging an EV is affordable. But we need to make sure that the cost of public charging is not a blocker for the millions who don’t have the option to charge at home. The EV charging industry is committed to delivering affordable charging for all and constantly introducing new innovative ways to bring prices down, but the sector has been hit by a number of policy decisions that have sent costs soaring.
“The government has the opportunity to address this in its forthcoming review into the costs of public charging. It should be looking at equalising VAT with home charging, addressing surging charge point standing charges and including EVs in its renewable fuel credit scheme to help making driving an EV the cost-effective option for everyone.”
Image from Shutterstock
