The UK Government has just launched a new Electric Car Grant (ECG) scheme aimed at making electric vehicles (EVs) more affordable and to support the acceleration of zero emission transport.
A budget of £650 million has been allocated and manufacturers will be accepted onto the grant scheme on a first come, first served basis, with funding available until the 2028/29 financial year.
What does the Electric Car Grant mean for you?
The new scheme is offering between £1,500 – £3,750 off the price of a new EV to enable more people across the UK the ability to enjoy greener travel if they choose to. The discounts will apply to vehicles costing up to £37,000, with the most environmentally friendly cars receiving the biggest reductions on price. These discounts will be provided at the point of sale.
This grant aims to close the affordability gap between petrol and electric cars. As the ban on the sale of new full petrol or diesel is due to come into place in 2030, the Government are looking for new ways to encourage drivers to switch to electric.
Car manufacturers have the opportunity to apply for these grants from 16 July 2025, with the aim for discounted cars to appear in dealerships in the next few weeks. Buyers will not have to complete any extra application forms. Manufacturers can join in as long as their models meet the Zero Emission Vehicle (ZEV) mandate requirements.
With registrations for EVs in the UK at 21% against a target of 28%, now is the time for the Government to create incentives for drivers.
Who can benefit from the scheme
The scheme is open to organisations and private individuals alike.
Is an EV right for you?
There are many different concerns that are causing a slower uptake of drivers transitioning to EV, including charging access at home and while on the road, commuting distances and the costs of running EVs when energy prices have been volatile. Weighing up the pros and cons of transitioning and understanding if an EV is right for you can be difficult. Our online EV suitability calculator can help you decide if you want to take advantage of the Government’s new grant scheme.
Our EV tool will take into account the budget you have, your current driving distance, the charging infrastructure, battery warranty, performance and environmental preferences and additional factors such as the ability to charge at home.
By understanding these different elements of purchasing an EV, our calculator will make an informed decision on whether an EV is the right choice for you.
If you are interested in making the most of the Government’s latest grant, try our electric car suitability calculator now.