The UK electric car grant 2026 is back, offering drivers up to £3,750 off a brand-new electric vehicle (EV). Designed to make EVs more affordable, this government incentive reduces upfront costs and supports the UK’s shift to zero-emission driving.
If you’ve been holding off on going electric, this could be your sign. Here’s everything you need to know about the new UK EV grant, including how it works, who qualifies, and which cars are eligible.
Let’s get plugged in..
The new Electric Car Grant (ECG) gives car buyers a discount of up to £3,750 off the purchase of a new EV, applied at the dealership: no forms, no faff.
Grant value: £1,500-£3,750 depending on the model
Eligible cars: Brand new EVs priced £37,000 or less
Start date: Manufacturers can apply from 16 July 2025
How it works: Discount applied directly at point of sale
This is part of the UK’s wider Plan for Change, with the goal of reducing transport emissions and helping more people afford electric vehicles.
The good news? You don’t need to apply directly. If your chosen car qualifies, the discount will be applied automatically by the dealer.
To qualify:
The EV must be priced under £37,000
It must be from a manufacturer signed up to Science-Based Targets (SBT) and making real sustainability progress
Two tiers of support:
£3,750 off for the greenest EVs
£1,500 off for others that still meet key environmental benchmarks
Roughly 173,000 cars could be subsidised through the scheme. That's around half of all EVs sold in the UK last year!
Upfront cost is one of the biggest barriers to EV adoption. The new grant helps:
Reduce sticker shock for first-time EV buyers
Target more affordable, mainstream models
Make EV ownership more attractive for drivers without off-street parking
Speed up the shift towards the 2035 petrol/diesel ban
Plus, with EVs saving up to £1,500 a year in fuel and maintenance, the long-term savings stack up fast.
There are nearly 50 models that could be eligible if their manufacturers meet the sustainability criteria.
Dacia Spring- from £14,995
Fiat 500e- from £25,035
MG4- from £26,995
Citroen e-C3- from £22,095
BYD Dolphin- from £30,205
Renault 5- from £22,995
Vauxhall Corsa Electric- from £26,780
No paperwork needed here’s how it works:
Choose a qualifying EV from a participating manufacturer
Visit the dealership or online seller
If the car is eligible, the discount is automatically applied at checkout
The grant applies to new EV purchases only, but manufacturers may offer leasing options that take it into account.
Alongside the £650m grant, the government has committed to:
£1.6bn for pothole repairs
And there's the Zero Emission Vehicle (ZEV) Mandate, requiring manufacturers to ramp up the proportion of EVs they sell, meaning more availability and choice for drivers.
Up to £3,750 depending on the model.
No, it’s applied automatically at purchase
No, only new cars qualify
Currently funded until 2030 (subject to funding availability).
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