Lower income households are being shut out of the UK’s electric vehicle market, risking a two tier system for who benefits from cheaper motoring and cleaner air, according to new research.
Autotrader’s ‘No Driver Left Behind 2026 report‘ found households earning under £40,000 are significantly less likely to consider an electric car than higher income groups, with affordability the main barrier to adoption.
The report, from Autotrader, shows that 48% of households earning below £40,000 would consider an EV for their next car.
This compares with 73% of households earning above £40,000, rising to 84% among those earning more than £80,000.
This is despite 70% of lower income households having access to a driveway, challenging assumptions that off street parking is the main determinant of EV uptake.
For drivers able to charge at home, average annual running cost savings could reach £1,500, but the report found many lower income buyers never reach the test drive stage due to wider affordability concerns.
Pay-per-mile road tax is putting off EV buyers
The findings follow a Budget which could make EV ownership more expensive from 2028, including proposals for a pay-per-mile road tax.
Nearly half of drivers, 47%, said they were less likely to go electric following the Budget, while 34% said their views were unchanged.
The research highlights a growing mismatch between the used car market and lower income demand.
Almost two fifths of lower income households buy cars priced at £5,000 or less, yet only 1% of used EVs currently sit in that price bracket.
Lower income households are also less likely to know someone who drives an EV or to have driven one themselves, reinforcing perceptions around high costs and inconvenience.
Targeted measures could help broaden EV adoption
With median household income in the UK at around £36,600 in 2024, the report warns that these barriers risk excluding average families from the transition to EVs and creating a structural divide in access to lower running costs and improved local air quality.
The report found that younger drivers and those living in urban areas within lower-income groups were more open to EVs, suggesting targeted measures could help broaden adoption.
Ian Plummer, chief customer officer at Autotrader, 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 of ChargeUK, added that public charging costs must not become a barrier for drivers without home charging.
She 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 barrier 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, but the sector has been hit by 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, including equalising VAT with home charging and addressing rising standing charges.”