A government-backed electric vehicle (EV) leasing scheme could assist 500,000 low income individuals in the UK.
That’s according to a report by the Social Market Foundation (SMF), which suggests the proposed scheme, modelled after a similar initiative in France, could potentially reduce the upfront cost of leasing EVs to £100 per month for eligible households.
The SMF argues that such a scheme would be a cost-effective alternative to direct subsidies for EV purchases.
Currently, the higher purchase price of EVs compared to internal combustion engine vehicles makes it challenging for low income households to afford them.
The SMF’s report shows that low income households need about five years to cover the cost of an EV because of its higher initial price, even though running costs are lower.
The proposed leasing scheme would allow families to lease an EV for three years, with the option to buy it or return it at the end of the term.
The government would cover the difference between the lease cost and the market rate.
According to the SMF, a social leasing scheme could help alleviate transport poverty, which affects five million people in the UK.
Gideon Salutin, Senior Researcher at Social Market Foundation, said: “Instead of waiting years for EVs to achieve price parity with regular vehicles, the government must be proactive.
“By reducing upfront costs through a social leasing scheme, we can remain on track for our net zero goals, and help hard-pressed families.”
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