Calls for free parking and bus lane access as Shell urges UK to accelerate EV uptake
Electric vehicle drivers in the UK could soon be offered a new wave of incentives, from free parking to bus lane access, as Shell pushes for stronger government intervention to accelerate the transition to zero-emission transport.
In evidence submitted to MPs, the energy giant called for a package of “perks” designed to stimulate demand for electric vehicles (EVs), warning that uptake risks stalling without urgent action.
The proposals, put forward to the UK Transport Select Committee, include allowing EVs to use bus lanes, offering discounted or free parking, reducing toll road charges, and extending grants of up to £3,750 to the second-hand EV market.
The intervention comes at a critical moment for the UK’s EV transition. According to the Society of Motor Manufacturers and Traders, electric cars currently account for around 22% of new vehicle sales, significantly below the Government’s 2026 target of 33%.
While the UK remains committed to banning the sale of new petrol and diesel cars by 2030, industry stakeholders are increasingly concerned that consumer demand is not keeping pace with policy ambition.
Shell, a major operator of public EV charging infrastructure and a supporter of the zero-emission vehicle mandate, warned that “affordability pressures are growing” and that without additional incentives, the transition risks becoming “uneven”.
At the heart of Shell’s proposal is a recognition that relatively small, visible incentives can play an outsized role in influencing consumer behaviour.
Allowing EVs access to bus lanes, a policy widely used in markets such as Norway, is one such measure. However, its application in the UK remains limited. Currently, only a single known example exists, on Daleside Road in Nottingham, while previous trials elsewhere have faced resistance.
Critics, including the RAC, have argued that such policies risk undermining the purpose of bus lanes and creating confusion for road users. Safety concerns have also been raised by cycling groups.
Free or discounted parking is another lever under consideration. Several UK councils already offer reduced residential permit fees for zero-emission vehicles, while others have introduced lower tariffs in town centres.
In Ashford, Kent, a recent trial allows EV drivers to park for free while charging, compared with charges of up to £13.20 for non-electric vehicles over a four-hour period.
Perhaps the most significant proposal centres on affordability. Shell has urged ministers to extend the existing Electric Car Grant, previously available for new vehicles, to the used EV market.
The idea has been backed by the Finance and Leasing Association, which argues that targeted incentives for second-hand buyers would deliver greater impact.
A £3,750 subsidy on a £15,000 used EV would represent a 25% price reduction, bringing ownership within reach of a broader demographic, particularly middle- and lower-income households currently priced out of the market.
Industry concerns are being compounded by mixed policy signals. Proposals linked to Chancellor Rachel Reeves, including a potential 3p-per-mile road pricing model for EVs from 2028, have already been flagged by the AA as having a “material confidence effect” on buyers.
Energy supplier Octopus Energy has also warned that inconsistent messaging risks confusing consumers at a critical stage in the transition.
Despite mounting pressure, the Department for Transport has said it currently has no plans to introduce direct fiscal support for the used EV market.
Shell points to international examples, particularly Norway, where EVs accounted for 98% of new car sales last year, as evidence that incentives can drive rapid adoption when deployed effectively.
However, replicating that success in the UK will require careful calibration. While perks such as bus lane access and free parking may accelerate uptake, they also raise questions around fairness, infrastructure capacity and unintended consequences.
For EV Powered readers, the broader takeaway is clear: the UK’s transition to electric mobility is entering a more complex phase. The early adopters have largely arrived, but bringing the mass market with them will require not just infrastructure, but incentives, clarity and confidence.
Whether the Government is prepared to go that far remains the key question.
