The UK Government’s Electric Car Grant Explained

Does the UK government give you money for buying an electric car? As of the 15th of July 2025, it does (kind of)!

The Government has launched its Electric Car Grant across the UK, aiming to help motorists make the switch to electric vehicles by giving discounts on certain eligible EVs. This is largely in line with the UK’s commitment to reaching net zero carbon emissions by 2050.

Under the grant, drivers can access funding to help them upgrade their internal combustion engine vehicles (petrol and diesel cars) to cleaner electric models. Electric vehicles aren’t known for being cheap to buy, so the Government’s funding has been welcomed by many, especially in the lead up to the 2030 ban on sales of new petrol and diesel cars. 

Read on for all you need to know about the Electric Car Grant.

What is the Electric Car Grant?

• The Electric Car Grant is a new system of funding that offers banded grant levels for drivers buying eligible new electric cars worth £37,000 or below in the UK.
• The aim is to help drivers afford new electric cars, feeding into the nation’s wider commitment to bringing down carbon emissions to meet the net-zero by 2050 goal.
• A discount of up to £3,750 is applied at the point of sale to drivers buying eligible new EVs.
• £650 million of grant funding has been set aside to help motorists buy new EVs as a part of this scheme.

How could the Electric Car Grant help you?

If you’re planning to buy a new electric car, you could receive a discount of up to £3,750 from the Government to help you afford it. 

The upfront costs of electric cars have long been cited as a deterrent for would-be consumers. There are also the running costs to consider (namely: servicing, tyre maintenance, and charging costs). Being able to save between £1,500 - £3,750 is a strong helping hand for drivers considering making the switch to EV.

On the benefits of the Grant, Transport Secretary, Heidi Alexander, says: “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”.

How does the Electric Car Grant work?

The Electric Car Grant works by providing drivers with funding when they purchase a new electric vehicle. The vehicle being purchased has to be from the list of eligible vehicles, as provided by the Department for Transport (full list below).

The Electric Car Grant is not something that consumers have to apply for. Instead, the seller of the new vehicle will simply include it as a discount as reflected in the purchase price. Manufacturers can apply for eligibility for the scheme which, if successful, allows garages to sell their vehicles with a discount (potentially increasing sales).

In order for a vehicle to be eligible, it must:

• Be an M1 passenger vehicle.
• Produce 0gCO2/km at the tailpipe.
• Have a minimum battery range of 100 miles (160km).
• Have a 3-year or 60,000 mile warranty, whichever is reached first.
• be powered by a battery with an 8-year or 100,000 mile warranty, whichever is reached first.
• Meet other minimum sustainability criteria.

Electric Car Grant bandings

The Electric Car Grant has two bands based on how sustainable a vehicle is in terms of the level of emissions associated with its production. Any vehicles that fail to meet the minimum sustainability criteria are excluded from the grant.

1. Band 1: A saving of £3,750 for cars that are produced the most sustainably produced cars. (As of August 2025, there are currently no cars eligible for the Band 1 discount yet).
2. Band 2: A saving of £1,500 for cars that meet some of the criteria for environmental friendliness. 

How long will the Electric Car Grant run for?

Currently, the Electric Car Grant has funding available until the financial year 2028 to 2029.  However, according to the Government, the closure date “will remain under review” for now, with them also stating that the scheme will be subject to amendment or even early closure should funds become exhausted. 

So, if you’re thinking about buying an electric car and want to make the most of the scheme, you’d better start shopping!

Which cars are included in the car grant?

On the 5th August 2025, the Government announced the first set of car models eligible for a £1,500 discount as part of the Electric Car Grant. These were four Citroën models:

1. Citroën ë-C3,
2. Citroën ë–C4 
3. Citroën ë-C5
4. Citroën ë-Berlingo

A complete list of eligible models

As of August 2025, the list of car models eligible for the Electric Car Grant are as follows. These 24 models are currently all eligible for the £1,500 discount only.

Citroën

• Citroën ë-C3 and Citroën ë-C3 Aircross
• Citroën ë-C4 and Citroën ë-C4 X
• Citroën ë-C5 Aircross
• Citroën ë-Berlingo

Cupra

• Cupra Born

Nissan

• Nissan Ariya
• Nissan Micra

Peugeot 

• Peugeot E-208
• Peugeot E-2008
• Peugeot E-Rifter

Renault

• Renault 4
• Renault 5
• Renault Alpine A290
• Renault Megane 
• Renault Scenic

Vauxhall

• Vauxhall Astra Electric
• Vauxhall Combo Life Electric
• Vauxhall Corsa Electric
• Vauxhall Frontera Electric
• Vauxhall Grandland Electric
• Vauxhall Mokka Electric

Volkswagen

• Volkswagen ID.3

What other Government grants are available for electric cars?

In line with its net-zero by 2050 target, the UK government has been pushing the sales of electric and hybrid cars as well as investing in charging infrastructure. 

Since July 2024 alone, over 17,300 public chargepoints have been added to the UK’s network in a 17% increase on the year before. This, alongside other schemes and initiatives, is a strong step in the right direction for decarbonising the UK’s travel sector. 

In total, the UK Government has invested £4.5 billion to turbocharge the switch to EVs, taking the form of investment in EV charging infrastructure and more:

• £25 million of funding to develop cross-pavement charging channels.
• £30 million grant funding for chargers at depots for vans, HGVs, and coaches.
• Subsidising the sale of new electric vehicles with schemes like the Electric Car Grant.
• Subsidising the cost of EV charger installation for homeowners with schemes like the EV Charger Grant.
• £8 million of funding for installing EV chargers at NHS sites.

Electric vehicle support from Kwik Fit

Planning to make the most of the Government’s latest EV initiative? If you’re buying a new electric vehicle, make sure your new wheels stay roadworthy for as long as possible with regular servicing, quality replacement parts, and expert advice from Kwik Fit.

Book in for an EV service today at your local Kwik Fit for a thorough check of your EV and added peace of mind.