The Electric Car Grant is back: Get up to £3,750 off a new EV in the UK

The UK government has officially revived the Electric Car Grant, scrapped in 2022 but now returning with up to £3,750 off a brand-new electric car. With £650 million in funding and discounts available from July 2025, the grant is part of a bigger plan to help households cut costs and drive the switch to zero-emission transport.

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..

What is the 2025 UK Electric Car Grant?

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.

Quick facts:

• 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.

Who's eligible for the EV grant?

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

Why this grant matters

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.

Which electric cars could qualify?

There are nearly 50 models that could be eligible if their manufacturers meet the sustainability criteria.

How do I get the discount?

No paperwork needed here’s how it works:

1. Choose a qualifying EV from a participating manufacturer

2. Visit the dealership or online seller

3. 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.

What else Is the UK government doing?

Alongside the £650m grant, the government has committed to:

• £30m to help business fleets go electric

• £8m for chargers at 200+ NHS sites

• £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.

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