In a significant move to accelerate the transition to zero-emission transport, the UK government has today announced the reintroduction of a grant for electric cars. The new £650 million "Electric Car Grant" scheme will offer consumers a discount of up to £3,750 on the purchase of new electric vehicles.
The grant, which comes three years after the previous plug-in car grant was phased out, is designed to make electric cars more affordable for a wider range of households and support the UK's commitment to ending the sale of new petrol and diesel cars by 2030.
Under the new scheme, the grant will be available for new electric cars with a purchase price of £37,000 or less. The full £3,750 discount will be applied to vehicles that meet the highest standards of manufacturing sustainability. A lower tier of grant may be available for other eligible models.
Car manufacturers will be required to apply for their vehicles to be part of the scheme, with the application process opening on July 16, 2025. The funding for the Electric Car Grant is secured until the 2028-2029 financial year, providing a medium-term incentive for both consumers and the automotive industry.
The Transport Secretary, speaking on the announcement, stated, "The reintroduction of the electric car grant is a key part of our strategy to make the UK a world leader in green transport. This will not only help consumers make the switch to electric but also provide a significant boost to the UK's automotive sector."
The move has been largely welcomed by the automotive industry, which has been calling for further government support to stimulate the electric vehicle market. Industry leaders believe the grant will help to address the upfront cost barrier that has deterred some consumers from making the switch to electric.
This new incentive is part of a broader government strategy to support the EV transition, which also includes significant investment in the UK's charging infrastructure. The government aims to ensure that the public charging network keeps pace with the growing number of electric vehicles on the road.
