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British households could miss out on savings of more than £800 a year on running costs if they choose a hybrid car over an electric one, amid concerns that recent government rule changes open the door for manufacturers to sell more polluting cars.
Owners of hybrid cars only save an average of £13 a year compared with drivers of petrol vehicles, but could save as much as £850 annually if they buy electric rather than petrol, according to analysis by the Energy and Climate Intelligence Unit (ECIU), a thinktank.
This month, Keir Starmer’s government changed electric vehicle rules to allow more sales of cars with petrol and diesel engines until 2035, after extensive lobbying by the automotive industry.
Allowing sales of hybrids, which combine a small battery with an internal combustion engine, was a key part of the changes to rules, known as the zero-emission vehicle (ZEV) mandate, that force carmakers to sell an increased proportion of electric cars each year. The government allowed sales of models such as the Toyota Prius and those using Nissan’s “e-Power” until 2035. Those cars use the engine to charge the battery, meaning they are not capable of zero-emission driving.
Carmakers argued successfully that hybrids cut carbon emissions compared with petrol cars. However, their main motivation for continuing with hybrid sales is that they are more profitable than electric cars. Petrol carmakers said that they needed those profits to invest in future electric production, with a global economic slowdown amid the US president Donald Trump’s trade war making it even harder to switch.
Colin Walker, head of transport at the ECIU, said: “While pitched as a response to the economic chaos of Trump’s tariffs, these changes could actually make things worse, costing UK consumers. 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 [the bill] for more expensive driving.
“Given how popular EVs are with their drivers, this looks like bad policy for families, driving up the nation’s driving bill.”
Hybrids can still be attractive financially for households, partly because they cost less upfront than electric cars. Hybrids can also appeal to car buyers who do not have easy access to charging, a problem in many urban areas, particularly outside London.
However, electric cars make significant savings on fuel and maintenance, meaning the total cost of ownership is lower for most people using electric cars.
The switch to electric cars is unavoidable if the UK is to hit its climate goals. Walker criticised “policy flip-flopping” on electric car rules, which he said would ultimately make the transition more expensive. The nascent and fast-growing EV charging industry has also warned of lost investment because of the changes.