The government has allocated £650 million to a new Electric Car Grant (ECG) offering discounts of up to £3,750 on eligible new electric cars priced at or under £37,000, with funding available until the 2028/2029 financial year1. The Transport Secretary announced the scheme on 15 July 2025, with a launch date of 16 July 20252. NAPIT, the electrical certification body, welcomed the announcement1.
Under the scheme, a maximum of £3,750 is available for buyers of very low-emission EVs, with a lesser grant of £1,500 for cars meeting minimum sustainability criteria. Buyers must choose a car on the government's list of approved vehicles that meets minimum sustainability requirements. Manufacturers must apply for the grant, and not all cars will be eligible2. Once a manufacturer is approved, the discount is applied at the point of sale with no paperwork needed from the buyer2. One roundup gives the discount range as £1,500 to £3,750, for cars priced under £37,000, on orders from 16 July onwards, and states it applies to leased and salary sacrifice cars3.
The grant sits alongside a wider £63 million funding package for EV rollout, which includes a £25 million scheme for local authorities to unlock cheaper at-home charging using cross-pavement technology, £30 million for businesses operating EV fleets to install charging points at depots, and £8 million for the NHS to invest in electric ambulances and fleets. The NHS funding is described as covering more than 200 sites in England3. One manufacturer states the £63 million package was announced on 13 July, with £25 million earmarked for cross-pavement charging4.
Reported figures for the UK EV market vary by source and date. NAPIT says more than 380,000 zero emission cars were registered last year1. NICEIC reports 381,970 electric car sales in 2024, almost 20 per cent of all new cars sold, and well over 1.5 million fully electric cars in the UK as of June 2025. A later NICEIC page puts the total at over 1,800,000 fully electric vehicles, 5.5 per cent of all vehicles, with almost 470,000 registered in 2025, 91,378 more than in 20245. EDF reports over 370,000 new EVs registered in 2024 and more than 210,000 in the first half of 20252. Charging infrastructure figures also differ: NAPIT cites over 82,000 public chargepoints and nearly 700,000 domestic chargepoints1, while NICEIC cites a network of 120,000 public EV chargers5.
The government has restated its plans to phase out the sale of new petrol and diesel cars by 20301, with a ban on the sale of new hybrid vehicles set to follow in 2035.
Why it matters for households
The grant reduces the purchase price of an eligible new electric car by up to £3,750, but only for models priced at or under £37,000 and appearing on the approved list2. For a household weighing up a switch, that narrows the gap between an electric car and an equivalent petrol or diesel model, though one industry body notes it may not bring the two to parity. The grant applies to new cars only2.
Charging at home is the part of running an EV that sits within a household's own energy arrangements. NICEIC states it is cheaper and more convenient to charge at home, particularly where an energy provider offers cheaper off-peak electricity or a specialist EV charging tariff. The £25 million cross-pavement element of the wider package is aimed at households without off-street parking, where a cable must cross the pavement to reach a car. Separate chargepoint grants exist for renters and flat owners, and for households with on-street parking, offering £350 or 75 per cent off installation costs, whichever is lower, subject to using an approved vehicle and an authorised installer5. The Electric Car Grant and the Closed Plug-in Car Grant sets out how the current scheme relates to earlier support, and the Electric Vehicle Chargepoint Grant for Renters and Flat Owners covers the installation grant for those without a driveway. Households comparing support across schemes can use the grants and energy independence guide.
What happens next
The ECG runs until the 2028/29 financial year2. Orders are accepted from 16 July 20253. Manufacturers must apply for the grant before their models can be discounted, and the list of eligible makes and models is expected to be updated2. The £25 million cross-pavement charging scheme for local authorities, the £30 million depot charging fund for fleet businesses and the £8 million NHS fleet funding form part of the wider £63 million package. New signage for EV charging hubs is to appear along major A roads in England3.
Sources5 cited
- NAPIT Welcomes Government Announcement on Discount for New Electric Cars as Boost to Consumers and Installers, napit.org.uk
- Read about the new electric vehicle grant | EDF, edfenergy.com
- The only EV news roundup you need; Electrobeat!, electroverse.com
- £25m Helps Driveway-Free EV Owners with Indra & Kerbo Charge, indra.co.uk
- Electric vehicle (EV) charger installation and maintenance | NICEIC, niceic.com