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EV grant UK - everything we know so far
Government funded discounts of up to £3,750 for qualifying electric cars costing less than £37,000 to help drivers make the switch
Words by: Dan Trent
Additional words by: Catherine King
Last updated on 22 July 2025 | 0 min read
The cost of buying an electric car and practicalities of running it if you don’t have off-street parking to install a home charger remain major blockers for many potential buyers. But the Government wants to help, and has announced a new round of support, including discounts for affordable EVs and investment in on-street charging for households who might otherwise have failed to reap the full cost savings of life with an electric car.
“We are making it easier and cheaper to own an electric vehicle,” said Transport Secretary Heidi Alexander in a statement announcing the measures. “We know access to charging is a barrier for people thinking of making the switch, so we are tackling that head on so that everyone – whether or not they have a driveway – can access the benefits of going electric.”
“We are making it easier and cheaper to own an electric vehicle,” said Transport Secretary Heidi Alexander in a statement announcing the measures. “We know access to charging is a barrier for people thinking of making the switch, so we are tackling that head on so that everyone – whether or not they have a driveway – can access the benefits of going electric.”
Cheaper to buy, cheaper to run
The headline figure is a Government-funded discount for certain electric cars costing less than £37,000 of up to £3,750 – effectively a 10 per cent saving at the point of sale for qualifying vehicles. This will be supported by help for local authorities in developing what is described as “cross pavement technology” so you can plug your car into your home’s cheaper domestic electricity even if it’s street parked. OK, these are actually little more than small trenches dug into the pavement and covered with a grille so your neighbours don’t trip over your charging cable. But, hey, every little helps!
Cutting emissions from transport is, of course, a huge part of the Government’s wider net zero goals, though the car industry has been pleading for a carrot to encourage slowing take-up of electric cars to accompany the stick of ever more stringent targets for the proportion of electric cars it needs to sell to meet the ZEV Mandate. As such it needs 28 per cent of cars sold in 2025 to be zero emissions but, as it stands so far, sales are stagnant at just 25 per cent.
Cutting emissions from transport is, of course, a huge part of the Government’s wider net zero goals, though the car industry has been pleading for a carrot to encourage slowing take-up of electric cars to accompany the stick of ever more stringent targets for the proportion of electric cars it needs to sell to meet the ZEV Mandate. As such it needs 28 per cent of cars sold in 2025 to be zero emissions but, as it stands so far, sales are stagnant at just 25 per cent.
Making affordable EVs … more affordable!
“A second consecutive month of growth for the new car market is good news, as is the positive performance of EVs,” says Mike Hawes of industry body SMMT. “As we have seen in other countries, government incentives can supercharge the market transition, without which the climate change ambitions we all share will be under threat.”
Looking at those sales in more detail while company and fleet buyers still enjoy tax incentives to go electric and account for the bulk of EV sales private demand has slumped, not helped by changes to the VED (or ‘road tax’ as many know it) that now lump battery-powered cars costing over £40,000 with the same ‘expensive car supplement’ as regular models, adding a chunk to monthly costs for the first five years of ownership.
Looking at those sales in more detail while company and fleet buyers still enjoy tax incentives to go electric and account for the bulk of EV sales private demand has slumped, not helped by changes to the VED (or ‘road tax’ as many know it) that now lump battery-powered cars costing over £40,000 with the same ‘expensive car supplement’ as regular models, adding a chunk to monthly costs for the first five years of ownership.
Devil in the detail
On the face of it the new system is similar to the previous Plug-in Car Grant and will discount more affordable models according to a number of factors, including the sustainability of their production. If we were to speculate that would favour European-built electric models like the Vauxhall Mokka Electric and its relatives within the wider Stellantis family over those coming from Chinese factories running on electricity generated by coal-fired power stations. While we still don’t know exactly how sustainability will be scored and which cars will qualify you can learn more about the ‘Science Based Target’ system informing the assessment here and we've put together a list of our favourite cars we hope will make the cut here.
The inevitable small print will concern which of the 67 electric cars on sale today for less than the £37,000 threshold will get the discounts, and at which of the two proposed levels. This is where it gets complicated, for the fact a car like Volvo’s very attractive EX30 would seemingly qualify on price but production is split across factories in China and here in Europe. Which makes scoring for sustainability somewhat tricky. The Mini Cooper Electric is another example, the starting price of £27,000 well within the limit but complicated by the fact production has started in China before switching to Oxford, which would support the Government’s wider ambition of incentivising cars built here in the UK. But could mean discounts only apply to Minis built here. While we wait for more clarity some manufacturers are getting ahead of the curve by offering their own discounts to help entice buyers now. Brands such as MG, Leapmotor and GWM have already put self-funded 'grants' in place to help private buyers make the switch to electric.
The inevitable small print will concern which of the 67 electric cars on sale today for less than the £37,000 threshold will get the discounts, and at which of the two proposed levels. This is where it gets complicated, for the fact a car like Volvo’s very attractive EX30 would seemingly qualify on price but production is split across factories in China and here in Europe. Which makes scoring for sustainability somewhat tricky. The Mini Cooper Electric is another example, the starting price of £27,000 well within the limit but complicated by the fact production has started in China before switching to Oxford, which would support the Government’s wider ambition of incentivising cars built here in the UK. But could mean discounts only apply to Minis built here. While we wait for more clarity some manufacturers are getting ahead of the curve by offering their own discounts to help entice buyers now. Brands such as MG, Leapmotor and GWM have already put self-funded 'grants' in place to help private buyers make the switch to electric.
Confused? You’re likely not alone, and we’ll bring you more information on which cars qualify – and which don’t – when the exact criteria become clear. Once that shakes out discounts will apply immediately and at the point of sale, meaning all you have to do as a buyer is enjoy the fact the car you were about to buy (hopefully) just got a chunk cheaper, whether that be upfront or on monthly payments.
If you already own an electric car, meanwhile, the charging experience should be getting easier, if not necessarily cheaper. This for the fact that alongside improved on-street charging there’s a pledge to improve signage to new charging ‘superhubs’, though the prices when you get there will remain higher than on a home charger for the fact the VAT is a lot more than on domestic energy. Campaigners have long argued for these rates to be equalised so those unable to charge at home aren’t forced to pay more than those who can, but it seems Rachel Reeves may have pulled rank over the Department for Transport on that one. Still, more visible public charging remains a good thing for those in the industry. “Signage impacts all the UK’s drivers because consumers need to see it to believe it,” says Osprey’s Ian Johnston. “Osprey have tirelessly highlighted the benefit that clear EV road signage would bring to drivers looking to make the switch.” More information when we have it but, in short, it looks like buying and owning an electric car could be about to get whole lot easier and, for some people, more affordable.
If you already own an electric car, meanwhile, the charging experience should be getting easier, if not necessarily cheaper. This for the fact that alongside improved on-street charging there’s a pledge to improve signage to new charging ‘superhubs’, though the prices when you get there will remain higher than on a home charger for the fact the VAT is a lot more than on domestic energy. Campaigners have long argued for these rates to be equalised so those unable to charge at home aren’t forced to pay more than those who can, but it seems Rachel Reeves may have pulled rank over the Department for Transport on that one. Still, more visible public charging remains a good thing for those in the industry. “Signage impacts all the UK’s drivers because consumers need to see it to believe it,” says Osprey’s Ian Johnston. “Osprey have tirelessly highlighted the benefit that clear EV road signage would bring to drivers looking to make the switch.” More information when we have it but, in short, it looks like buying and owning an electric car could be about to get whole lot easier and, for some people, more affordable.