The news comes after the UK government's Department for Transport revealed the first 2 EVs to receive the full £3,750 electric car grant – meaning that you now get a discounted rate on a total of 28 qualifying vehicles, with more vehicles to come in the future.
The grant applies to eligible vehicles priced at up to £37,000, offering you discounts of either £1,500 or £3,750.
See further below for a full list of the eligible models.
Why Is It Happening?
The government Electric Car Grant Scheme is part of the overall plan to encourage drivers like you to make the switch to electric vehicles in anticipation of the 2030 ban on the sale of new petrol and diesel vehicles.
Despite the subsidies and incentives already available to EV drivers, the relatively high price point of electric vehicles has still been a barrier, meaning the grants could help to bridge that gap. Edmund King, president of the AA, stated that drivers "frequently tell us that the upfront costs of new EVs are a stumbling block to making the switch to electric".
The grants will be funded through the government's £650million Electric Car Grant Scheme.
Do I Need to Apply for It?
Nope, zero effort required on your part.
The discounts are automatically applied at the manufacturer level, so you don't need to take any action.
The grant won't be 'backdated' though, so if you ordered your vehicle before the date on which it took effect, the discount won't apply.
The grant will be available for you to enjoy for up to 3 years.
Does the Grant Apply to Lease Vehicles?
In theory, yes.
In reality, the price changes may not always filter through immediately. And even after manufacturers confirm pricing adjustments, funders may need additional time to finalise the changes and weigh any extra risks from the lease vehicle's future value.
It's also possible that some funders will only pass on a portion of the full £3,750.
Electric Vehicles Eligible for the £3,750 Discount
-
Ford Puma Gen-E
-
Ford E-Tourneo Courier
The eligible cars above receive the full grant due to their low carbon emissions, but the government are also favouring manufacturers with the most sustainable and 'greenest' production and vehicle manufacturing methods (for example, using 100% renewable energy).
Electric Vehicles Eligible for the £1,500 Discount
The following 26 vehicles receive the lower 'Band 2' discount because they have a higher carbon emissions output.
-
Citroën ë-C3 & Citroën ë-C3 Aircross
-
Citroën ë-C4 & Citroën ë-C4 X
-
Citroën ë-C5 Aircross
-
Citroën ë-Berlingo
-
Cupra Born
-
DS DS3
-
DS N°4
-
Nissan Ariya
-
Nissan Micra
-
Peugeot E-208
-
Peugeot E-2008
-
Peugeot E-308
-
Peugeot E-408
-
Peugeot E-Rifter
-
Renault 4
-
Renault 5
-
Renault Alpine A290
-
Renault Megane
-
Renault Scenic
-
Vauxhall Astra Electric
-
Vauxhall Combo Life Electric
-
Vauxhall Corsa Electric
-
Vauxhall Frontera Electric
-
Vauxhall Grandland Electric
-
Vauxhall Mokka Electric
-
Volkswagen ID.3
Summary
Whilst the government Electric Car Grant might not make emission-free driving affordable to all, it does provide an extra incentive on eligible EV models for UK residents and helps households save money.
FAQs
Is there a government grant for electric cars?
Yes, the government's Electric Car Grant applies to low-emission electric vehicles with a retail price of up to £37,000. A total of 28 vehicles qualify for the grant, with the Ford Puma Gen-E and the Ford E-Tourneo Courier getting the full discount of £3,750 and 26 other vehicles receiving the smaller discount of £1,500 due to their higher emissions level.
Which electric cars are eligible for the 3750 grant?
The Ford Mustang Mach-E and the Ford E-Transit Courier are currently eligible for the full Electric Car Grant of £3,750. However, more cars are expected to be added to the Scheme in the future, so stay tuned.
Will electric car owners in the UK have to pay vehicle tax from April 2025?
From April 2025, electric car drivers need to pay for road tax (Vehicle Excise Duty) on EVs registered on or after April 1, 2025. You will need to pay the minimum lowest first year rate of vehicle tax set at £10 from 1 April 2025 (subject to change).