Electric vehicle incentive of up to £3,750 unveiled - understanding the application process
### Affordable Electric Vehicles Get a Boost with New Government Grant
The UK government has announced a new £650 million electric car grant, offering discounts of up to £3,750 on lower-cost electric vehicles priced at or under £37,000. This move is aimed at making electric vehicles (EVs) more accessible and affordable for a wider range of drivers, as the country works towards phasing out the sale of new petrol and diesel vehicles by 2030.
The grant, which will be available until the 2028/29 financial year, applies to vehicles that meet high sustainability standards, including verified science-based emission targets that align with the UK's climate commitments. Vehicles will be grouped into bands based on these criteria, with those in the "greenest" band receiving the highest discount.
As of now, the specific electric car models eligible for the subsidy have not been detailed. Manufacturers can apply for their zero-emission vehicles to be part of the grant scheme from 16 July 2025, and the Department for Transport will maintain an updated list of eligible vehicles on their website as vehicles are approved.
The grant is expected to be welcomed by drivers who want to switch from petrol or diesel to an electric vehicle but have been deterred by the upfront costs. John Cassidy, managing director of sales at Close Brothers Motor Finance, has expressed support for the new grant, while Edmund King, president of the AA, has welcomed the incentive as a significant step in promoting widespread electric vehicle adoption.
In addition to the grant, the government has announced a new package to support charging stations at home for households with an electric vehicle. This includes £25 million for local authorities to expand access to cheaper at-home charging, with the aim of making charging solutions more accessible for all.
The return of grants is seen as a positive development, following the closure of the Plug-in Car Grant in 2018. The new scheme is expected to help spur more drivers to switch to an electric vehicle, with the Renault 5 E-Tech, currently the third-highest selling electric car in the UK, priced at around £23,000, and the Dacia Spring, priced at around £15,000, both falling within the eligible price range.
The AA has campaigned for incentives to help overcome the price barrier of EV ownership, and the new grant is expected to be a significant step in achieving this goal. With 33 types of new electric cars available from under £30,000, the affordability of EVs is improving, and the new grant is set to make them even more attractive to potential buyers.
The UK government's new electric car grant offers discounts on lower-cost vehicles, aiming to make them more financially accessible. This move could potentially reduce the upfront property costs for drivers interested in transitioning from petrol or diesel to electric vehicles. Furthermore, the government has announced a new package to support home charging stations, indicating a focus on reducing technology barriers associated with electric vehicle ownership.
