Drivers across the UK will soon be eligible for discounts of up to £3,750 on dozens of new electric car models under a £650m government scheme unveiled on 15 July.
The Electric Car Grant (ECG) aims to make zero-emission vehicles more affordable and support the government’s pledge to phase out new petrol and diesel cars by 2030.
The ECG will offer point-of-sale discounts on eligible electric vehicles priced at £37,000 or under, with funding available from 16 July 2025 until the 2028–29 financial year.
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.”
The initiative is designed to reduce upfront costs, a common barrier to EV adoption, and make EVs cheaper to buy and run than ever. The government claims drivers could save up to £1,500 annually in fuel and maintenance.
“This is our Plan for Change in action,” Alexander added. “We’re backing British drivers, British jobs and British growth.”
Industry leaders welcomed the move. Simon Williams, head of policy at the RAC, said: “Discounted cars should start appearing at dealerships within weeks… better for their wallets, but better for the planet too.”
Vicky Read, CEO of ChargeUK, called the announcement “brilliant news,” highlighting the UK’s expanding charging network, now with over 82,000 public chargepoints.
Mike Hawes, SMMT chief executive, said the scheme “is a welcome response to consistent calls from the industry for more support,” adding it could help take EVs from one in four sales today to four in five by 2030.
This series covers the developing electric vehicles market of the UK and its increasing infrastructure, as the nation advances its net-zero goals. For all things EV, don’t miss out on your free ticket to EVCharge Live UK – taking place 23-25 September 2025.
