Electric car grant: new UK government EV grants give drivers £1,000s off electric cars for 2025 - eligibility
A major boost is coming for anyone eyeing an electric upgrade 🌍
- Generous EV grants of up to £3,750 are being reintroduced for the first time since 2022
- They’re available on new electric cars priced under £37,000 that meet sustainability criteria
- There’s no need to apply – discounts are handled by manufacturers and applied at the point of sale
- Around 33 models currently qualify, with discounted vehicles expected in showrooms within weeks
- It’s part of a wider push to boost electric car uptake and meet UK zero-emission targets
Drivers looking to make the switch to electric could now get thousands of pounds off the price of a new vehicle.
That’s because the Government is set to reintroduce (electric vehicle) EV grants for the first time since 2022.
The new Electric Car Grant scheme will offer up to £3,750 off eligible models, with funding drawn from a £650 million pot. Grants will be available from Wednesday (16 July), with manufacturers responsible for applying on behalf of customers.
Discounted cars are expected to start appearing in showrooms and online within weeks. Around 33 models are currently priced under £30,000, according to the Department for Transport (DfT).
Transport Secretary Heidi Alexander said: “This EV grant will not only allow people to keep more of their hard-earned money – it’ll help our automotive sector seize one of the biggest opportunities of the 21st century.”
Who is eligible?
To qualify, cars must cost no more than £37,000 and meet certain sustainability criteria – with the cleanest models qualifying for the biggest discounts.
- You must be buying a brand-new electric car
- The vehicle must be priced at £37,000 or less
- The car must meet certain environmental standards to qualify for a grant
- Band one vehicles (the most sustainable) qualify for up to £3,750
- Band two vehicles qualify for up to £1,500
- Applications must be made by the manufacturer, not the driver
How to apply
You don’t need to apply yourself — the process is streamlined: all grant applications are submitted by manufacturers or dealerships, not individual buyers.
Starting from Wednesday 16 July, 2025, car manufacturers can apply to have their electric vehicle models included in the scheme.
Once approved, the grant is automatically deducted from the price at the point of sale, and manufacturers are reimbursed by the Treasury.
‘Now is the time to switch’
The reintroduction of grants comes as the Government pushes ahead with its zero-emission vehicle (ZEV) mandate. Manufacturers must ensure at least 28% of their new car sales in 2025 are zero-emission – typically meaning fully electric.
But uptake has lagged behind targets, with EVs making up just 21.6% of new car sales so far this year. The grant is seen as a way to address one of the key concerns among would-be EV drivers: cost.
While battery-only cars can be cheaper to run over time, the higher initial purchase price remains a major barrier. Industry figures welcomed the announcement.
Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, called it a “clear signal to consumers that now is the time to switch,” while RAC policy head Simon Williams said the most sustainable cars would now “be better for your wallet – and the planet”.
The scheme comes alongside other measures to boost EV uptake, including clearer road signs for chargepoint hubs and a £25 million project to help households without driveways charge from home using pavement gullies.
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