Government support to reduce cost of EVs by up to £3,750 – November 2025 update:
November 25 UPDATE:
In the 2025 Budget the government announced that the Electric Car Grant is being extended & expanded. They will invest an extra £1.3 billion and the grant could run until 2028-29.
What you need to know:
- There is a discount between £1500 & £3750 on eligible cars priced at/under £37,000.
- The discount is available for drivers leasing an EV or paying for their car through salary sacrifice.
- It is available on new cars eligible from August 2025.
- The cars eligibility and level of discount depends on the sustainability of the car’s production. This is based on the energy used to assemble the car and manufacture the battery.
- Car manufacturers have to apply for their cars to be eligible.
Switching Over:
This is welcome news to anyone considering making the switch to an electric car. The discount brings down the cost of the car, so more drivers can switch. By doing so, it gives those drivers access to ongoing savings of up to £1500 per year, (compared to fuelling cars), if they charge at home.
The Electric Car Grant comes alongside the government’s renewed commitment to the Zero Emission Vehicle (ZEV) mandate which will phase out the sale of new petrol and diesel cars by 2030. The government is also investing £63m in EV charging points, giving peace of mind for those who don’t have a driveway, or travel longer than average distances and rely on public charging.
Making it easy:
The government continues to support electric driving by making it cheaper and easier to do so, by;
- Cheaper cars: With over 80 models priced at/under £37k.
- Discounted home energy: Cheaper green/EV tariffs available.
- Public charging networks growing.
Questions Please!
Can I get the discount if I lease my car?
Yes!
Are salary sacrifice cars included?
Yes! And this is on top of the savings you make through salary sacrifice.
Which cars will the discount be available on?
There are currently over 80 brand new electric cars available at/under £37k. See current list below:
https://www.gov.uk/plug-in-vehicle-grants/cars
Why is the government offering the new Electric Car Grant?
The government is looking to encourage more drivers to make the switch to not only to support the UK’s transition to Net Zero, but to enable people to make savings on running their car.
EV drivers can already save up to £1500 per year and this grant helps bring down the up front cost as well.
When can I get the discount?
You can now get the grant when you order an eligible car.
How long will the discount be available for?
The scheme will run for 3 years, with a total investment of £650m. The funding is available on a first come, first served basis.
How do I claim the discount?
You don’t apply for the grant. The seller includes it as a discount in the purchase price.
Can I get the discount on a used EV?
The discount is only available on new cars.
What if I’ve already ordered an EV?
If you’ve already ordered your car, check with the seller.
What if I’m about to place an order?
Again, check with the seller.
What if my car’s already been delivered?
If your car’s already been delivered, under government rules, there is nothing you can do.
