Electric Car Grant Explained: Up to £3,750 Off

The Electric Car Grant is a government scheme that reduces the price of some new electric cars. It is applied by the seller at the time of purchase. Here is what you need to know.

How much is it?

The grant is up to £3,750 off the price of an eligible new electric car. The amount depends on the car, and some eligible cars qualify for a smaller grant.

What is the price cap?

The car must have a price of £37,000 or less to be eligible.

Which cars qualify?

Not every electric car qualifies. The government sets criteria linked to how and where cars are made, and how sustainable the manufacturing is. Manufacturers apply for their cars to be included, and some cars get a smaller grant or none. The list of eligible cars changes, so check GOV.UK for the current list before you buy. A dealer should be able to tell you whether the car you want qualifies and what the grant is.

How do you get it?

You do not apply yourself. The manufacturer or dealer applies for the grant and takes it off the price you pay. When you compare offers, ask for the price after the grant, and check what the dealer is giving in addition.

How long does it run?

The scheme opened for manufacturers in July 2025 and was reported to run until the 2028/29 financial year, with total funding of about £650 million. Funding can be used up, and rules can change, so check the current position.

Does it apply to used cars?

No. The grant is for new cars. If you buy a used electric car, you do not get it, but used cars can be cheaper to buy.

Is it worth it?

The grant reduces the purchase price, which is often the biggest barrier. To see whether an electric car makes sense, you still need to compare running costs. Compare:

• Fuel savings at home charging. See charging an electric car: home vs public.
• Tax. See electric car tax: VED and pay-per-mile.
• Charger cost. See home EV charger guide.
• Your annual mileage. See is an electric car worth it for low mileage?.

Other ways to save

• Compare dealer offers, including finance deals and leasing.
• Look at salary sacrifice if your employer offers it. The details depend on the scheme and your tax position.
• Consider a used electric car, which may cost much less.

Before you buy

1. Check the car's eligibility and the exact grant.
2. Ask for the final price in writing.
3. Compare the total cost of ownership, not only the monthly payment.

Details are as reported in the government announcement and press coverage. Rules and eligible cars change, so check GOV.UK before you buy.