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Electric Car Grant 2025

Everything you need to know about the government's incentives for electric vehicles, including the Electric Car Grant (ECG).

What is the government's Electric Car Grant?

In July 2025, the UK Government announced the reintroduction of grants to support the purchase of eligible electric vehicles (EVs). The scheme is designed to make EVs more affordable and encourage more drivers to make the switch from petrol and diesel vehicles to fully electric models.

How the grant works

  • The grant provides up to £3,750 off the price of a qualifying new EV.
  • The discount is applied directly at the point of purchase, so buyers do not need to apply separately.
  • Used EVs are not covered by this scheme, it applies only to new, and certain eligible models.

Duration of the scheme

The EV grant will run until the 2028/29 financial year, or until the allocated funding is used up, whichever comes first.

This gives buyers several years to take advantage of the scheme, though availability will depend on both vehicle eligibility and overall demand.

Why the grant has been introduced

The government has set ambitious targets for the UK's transition to electric transport. By the end of the scheme, it is hoped that at least 52% of new cars sold in the UK will be fully electric. Grants are one of several measures being used to support this transition, alongside charging infrastructure investment and broader sustainability goals.

How can I apply for the Electric Car Grant?

You don't need to apply for the EV grant yourself. The manufacturer or dealership will apply for funding directly from the government, and the discounted price will be available at the point of sale.

Which cars qualify for the Electric Car Grant?

Vehicles priced under £37,000 that meet Science-Based Targets (SBT) for cutting emissions will qualify for the government grant. If a car's basic model is below £37,000, any pricier trim levels up to £42,000 may be eligible for the grant. No cars that exceed £42,000 will be eligible, regardless of the price and emissions of its most basic model.

Depending on the emissions generated, cars will fall into two bands. The most sustainably produced cars will be in 'band one' and will receive the full £3,750 discount. Cars which meet baseline environmental criteria will be in 'band two' and will receive up to £1,500 off.

Many manufacturers have responded by providing their own discounts and incentives, separate to the official government Electric Car Grant. Below are the new electric cars available at Vertu that either qualify for the government grant, or have been discounted by the manufacturer.

MANUFACTURER MODEL DEAL MAN/ECG
BYD Atto 3 Five Year Free Servicing Manufacturer
BYD Dolphin Five Year Free Servicing Manufacturer
BYD Dolphin Surf Five Year Free Servicing Manufacturer
Citroen e-C3 £1,500 off ECG
Citroen e-C3 Aircross £1,500 off ECG
Citroen e-C4 £1,500 off ECG
Citroen e-C4 X £1,500 off ECG
Citroen e-C5 Aircross £1,500 off ECG
Citroen e-Berlingo £1,500 off ECG
CUPRA Born (selected models) £1,500 off ECG
FORD Puma Gen-E £3,750 off ECG
FORD E-Tourneo Courier £3,750 off ECG
Hyundai Inster £3,750 off Manufacturer
Hyundai IONIQ 5 £1,500 off Manufacturer
Hyundai IONIQ 5 N £1,500 off Manufacturer
Hyundai IONIQ 6 £1,500 off Manufacturer
Hyundai IONIQ 9 £1,500 off Manufacturer
Hyundai Kona Electric £1,500 off Manufacturer
MG MG4 £1,500 off Manufacturer
MG MG4 XPOWER £1,500 off Manufacturer
MG MGS5 £1,500 off Manufacturer
Nissan Micra £1,500 off ECG
Nissan Ariya (selected models) £1,500 off ECG
Peugeot E-208 £1,500 off ECG
Peugeot E-2008 £1,500 off ECG
Peugeot E-308 £1,500 off ECG
Peugeot E-308 SW £1,500 off ECG
Peugeot E-408 £1,500 off ECG
Peugeot E-RIFTER £1,500 off ECG
Peugeot E-TRAVELLER £1,500 off Manufacturer
Renault Renault 4 £1,500 off ECG
Renault Renault 5 £1,500 off ECG
Renault Megane £1,500 off ECG
Renault Scenic £1,500 off ECG
Skoda Elroq (selected models) £1,500 Off ECG
Skoda Enyaq (selected models) £1,500 Off ECG
smart #1 £1,500 off Manufacturer
smart #3 £1,500 off Manufacturer
Vauxhall Corsa EV £1,500 off ECG
Vauxhall Mokka EV £1,500 off ECG
Vauxhall Frontera £1,500 off ECG
Vauxhall Astra EV £1,500 off ECG
Vauxhall Astra Sports Tourer EV £1,500 off ECG
Vauxhall Grandland EV £1,500 off ECG
Vauxhall Combo Life EV £1,500 off ECG
Volkswagen ID.3 (selected models) £1,500 ECG
Volvo EX30 £1,500 off Manufacturer

What other government grants are there for electric vehicles?

Workplace Charging Scheme (WCS)

A voucher-based scheme, the WCS helps businesses install electric car charging points on their premises. It covers up to 75% of the installation costs, capped at £350 for each socket, for up to 40 sockets. To apply, you'll need to have a Companies House Registration Number, own the premises or have permission to install, and use an approved installer. You'll also need to ensure the voucher is issued before the final installation date as retrospective applications cannot be used.

Buy an EV at Vertu

With dozens of electric vehicles priced under £37,000, this new grant has the potential to make EVs more affordable than ever before.

The confirmed list of eligible cars will be out soon. And some manufacturers have already started their own offers in anticipation. If you're in the market for a new car, this might be the perfect time to go electric.

At Vertu, we've been selling and servicing EVs for years and are ready to help guide you through the process - from your first test drive to your recurring services.

Latest EV news

Full Renault EV Range Given ECG Discount

Full Renault EV Range Given ECG Discount

Every new electric car in the Renault range will now benefit from the government’s Electric Car Grant after confirmation of the latest raft of models that have secured eligibility for the discount.

What Offers Are Available Under The Electric Car Grant?

What Offers Are Available Under The Electric Car Grant?

The announcement from the UK government of an Electric Car Grant has resulted in a raft of manufacturers introducing new discounts on EVs, even before the full list of models eligible for the actual grant have been confirmed.

Frequently Asked Questions

Do you still get a grant for electric cars?

There are still some grants available to help make electric cars more accessible and easier to own. These include grants and schemes to help with installing charging points which you can find more information on above.

What discounts can I get on an electric car?

Businesses can enjoy discounts in the form of a lower Benefit-in-Kind (BIK) tax rate of 2% with an electric car. Other exclusive discounts may be available on electric cars for 'blue light' workers such as those in the NHS, the military, or the police.

Is an electric car 100% tax deductible?

The government states that new electric cars will qualify for a 100% first-year allowance. This means businesses can deduct the full cost from their profits before tax during the first year. For more information, visit the government website.

Who is eligible for electric car grants?

This depends on the specific grant. For instance, the Electric Vehicle Homecharge Scheme (EVHS) is only open to flat owners or renters who have off-street parking. You can check your eligibility for an electric car grant on the government's website, where you'll find the full criteria.

Can I buy an electric car through my business?

Yes, you can. At Vertu, we're an Electric Vehicle Approved (EVA) retailer, meaning we're well-placed to help you lease an EV for your business or expand your fleet. Get in touch with us today to discuss your needs, and our expert team will be happy to help.