Electric Car Grant scheme aims to boost uptake of zero-emission vehicles

The UK Government has announced a £650 million Electric Car Grant scheme, worth up to £3,750 per car, to reduce costs of new zero-emission vehicles.

The scheme for car manufacturers aims to close the gap in pricing between electric and petrol and diesel cars and enable more people to be able to afford zero-emission cars ahead of the 2030 deadline that will end the sale of new vehicles powered by conventional fuels. Eligibility for the scheme will be dependent on manufacturers meeting high sustainability standards. Discounts up to £3,750 will be available at the point of sale for new eligible electric cars priced at or under £37,000.

Manufacturers will be able to apply for the grants from 16th July with funding available until the 2028/29 financial year.

With drivers citing high upfront costs as a key barrier to adoption, the grant will narrow the upfront cost between petrol and electric vehicles.

Transport Secretary, Heidi Alexander, said:  

“This EV grant will not only allow people to keep more of their hard-earned money – it’ll help our automotive sector seize one of the biggest opportunities of the 21st century.  

“And with over 82,000 public chargepoints now available across the UK, we’ve built the infrastructure families need to make the switch with confidence.“

Motoring groups have welcomed the funding, which sits alongside a £63 million package to support home EV charging, electrification of NHS fleets and investment in public and business chargepoints.

Simon Williams, RAC head of policy, said:

“Within weeks, discounted cars should start appearing at dealerships across the country. And, as the biggest savings will be given to cars with the strongest ‘green’ manufacturing credentials, drivers will be picking models that are not only better for their wallets, but better for the planet too.

“This is further welcome news following last week’s announcement about more funding for pavement gully charging solutions that will enable those without driveways to charge an EV at home. Together, these initiatives should mean more drivers than ever start benefitting from the lower costs of running an electric car.“