The Energy and Climate Intelligence Unit published analysis on 22 April 2025 finding that changes to the Zero Emissions Vehicle (ZEV) mandate could leave millions of families spending over £1000 a year more on driving1. The unit says the Government has weakened the incentive for manufacturers to bring down electric vehicle prices as they compete to hit sales targets, and that the changes could encourage a switch in focus from EVs to hybrids, which it describes as more expensive and more polluting to run1.
The analysis compares running costs against equivalent petrol cars. The UK's best selling standard hybrid electric vehicles offer savings of just £13 a year over their petrol equivalents, while switching to an equivalent EV instead could raise savings to £8501. For plug-in hybrid electric vehicles the saving is £117 a year, against over £1050 for an equivalent EV1.
| Vehicle type compared with petrol equivalent | Annual saving |
|---|---|
| Standard hybrid (HEV) | £13 |
| Plug-in hybrid (PHEV) | £117 |
| Battery electric (EV) | £850 to over £1050 |
The unit attributes the low savings from plug-in hybrids to European Commission evidence that PHEVs burn 350% more fuel, and produce 350% more CO2, than their manufacturers claim1. It also states that the car industry as a whole complied with its ZEV mandate obligations in the first year, 20241.
Colin Walker, Head of Transport at the Energy and Climate Intelligence Unit, said:
"With less onus on manufacturers to compete to sell EVs in the UK, and the Government encouraging them to sell more hybrids instead, potentially millions of families could be left to foot a bill of up to £1050 a year for more expensive driving."
The unit says the changes will mean fewer second hand EVs available to the 80% of buyers who use the used market, and that EVs are already at price parity with petrol cars there1. It cites a CBI Economics report, commissioned by the unit, finding that a failure by the car industry to make the transition could cut its contribution to the UK economy by as much as 73%, or £34.1bn, with over 400,000 jobs lost, while a rapid and successful transition could increase economic output by over £16bn and create 167,000 jobs1. The unit also says the UK recently became Europe's largest EV market1. The Government's own reasoning for the changes is not set out in the analysis, and the specific amendments to the ZEV mandate have not been reported here.
Why it matters for households
The gap between hybrid and electric running costs is the practical point. On the unit's figures, a household choosing a standard hybrid over an equivalent EV forgoes roughly £837 a year, and one choosing a plug-in hybrid forgoes over £9331. For a home weighing up charging against petrol, that difference sits alongside the cost of electricity, which falls under DESNZ policy, and any regional building or energy rules such as those set in Wales. The analysis also links the mandate to the supply of used EVs, the market where most buyers shop, so the effect on household costs may show up in what is available second hand rather than in showroom prices alone1.
What happens next
The analysis sets out no dated next steps. It says the changes put billions of pounds of investment into the charging network in jeopardy, without giving a figure or timetable1.