Transport Scotland - Used Electric Vehicle Loan Scheme information: FOI release

Information requested

1) How the maximum loan amounts by vehicle type were decided upon in each round of the scheme.

2) How the total value of each loan fund was decided upon.

3) How the maximum gross household income limit was decided upon in each round of the scheme.

4) How the geographic eligibility criteria were decided upon in each round of the scheme.

5) The number of enquiries made to each round of the scheme.

6) The number of loans actually awarded in each round of the scheme.

7) The financial value of each loan awarded in each round of the scheme.

8) The types of vehicles bought with the loans, split by the moped, motorcycle, car and van as a minimum (with makes and models if such data is recorded) in each round of the scheme.

9) Any anonymised demographic information of drivers enquiring about the scheme in each round of the scheme, and separately that went on to take out a loan in each round of the scheme.

10) Please also share any information held on the decision-making process to run each round of the scheme, and the process that will take place to assess if a third round will be run in 2026/27 or beyond.

Response

I enclose a copy of all the information you requested in the format that you asked for, the information you requested for points 5 – 9 can be found on the separate spreadsheet attached to this response.

1) Loan values and the overall performance of this fund is reviewed on an annual basis between Transport Scotland officials and Energy Saving Trust (EST) who administer this fund on behalf of Scottish Ministers, reviewing these limits ensures public funds are directed toward vehicles within an agreed affordability band and evolve in response to broader policy aims, including supporting equitable access to zero‑emission vehicles and adapting to changing market conditions. These market conditions include shifts in used EV pricing and affordability pressures, which have informed the ongoing refinement of loan schemes as part of a wider effort to support households and communities most in need while encouraging uptake of zero‑emission transport.

2) Overall funding levels are set as part of wider Scottish Government budget decisions supporting uptake of zero‑emission vehicles and reflecting evolving policy priorities, demand levels, and market conditions. In 2024/25 a total of £15 Million of existing loan repayments were used and in 2025/26 a total of £20 Million of existing loan repayments were used to fund the loan. These allocations form part of a long‑running investment programme in which the Scottish Government has provided over £250 million in interest‑free EV loans since 2011, alongside substantial capital investment in charging infrastructure, indicating that total fund values are shaped by broader transport decarbonisation objectives and the resource available within each annual budget cycle.

3) Scottish Governments EV incentive schemes are designed to evolve in line with Scotland’s just transition commitments ensuring the benefits of decarbonisation are accessible to those who may otherwise be left behind and funding decisions are shaped by the need to support lower‑income households and those most affected by cost‑of‑living pressures to participate in the shift to low‑emission transport. The household income limit of £50,000 functions as a practical mechanism to target support toward lower‑income households, reflecting the Scottish Government’s commitment to a fair and equitable transition to net zero.

4) The eligibility for this scheme includes households in rural, remote and island areas, this aligns with the Scottish Government’s Urban Rural Classification—specifically Groups 5 to 8 of the eight‑fold system, which covers very remote small towns, accessible rural areas, remote rural areas and very remote rural areas. This approach reflects Transport Scotland’s wider just transition objectives, ensuring that support is targeted toward communities facing the greatest barriers to EV ownership, including longer travel distances, limited transport options and reduced access to public charging infrastructure, so that these households are not left behind as Scotland moves toward net zero.

5) 2024/25 – 1741
2025/26 – 1959

6) 2024/25 – 661
2025/26 – 767

7) Answered in Data tab A of attached Excel spreadsheet.

8) Answered in Data tab A of attached Excel spreadsheet.

9) Answered in tab Data B of attached Excel spreadsheet for 2024/25. Answered in tab Data C of attached Excel spreadsheet for 2025/26.

10) The Scottish Budget is set on an annual basis and is impacted by the UK Budget setting process and funding consequentials received from the UK Government. Work is currently underway and Transport Scotland officials are currently working on forward business plans for review by Scottish Ministers and senior management within Transport Scotland to develop proposals for a programme of incentive schemes designed to support Scotland’s transition to becoming a Net Zero nation.As part of this process, the previous interest‑free loan scheme will not be reinstated. Instead, Ministers have confirmed £17.8 million of funding for a package of incentive schemes in 2026 27 to support the continued uptake of electric vehicles (EVs) and the expansion of EV charging infrastructure.

These schemes will focus on improving access to public, workplace and home charging, with targeted support for rural and island communities, lower income households, households without off-street parking, microbusinesses and third sector organisations.

About FOI

The Scottish Government is committed to publishing all information released in response to Freedom of Information requests. View all FOI responses at https://www.gov.scot/foi-responses.

FOI 202600510127 - Information released - Annex

File type

Excel document

File size

279.5 kB