UK to offer drivers discounts of up to £3,750 on electric cars
Drivers across the UK will soon enjoy discounts on dozens of new electric car models as the Transport Secretary has announced a £650 million grant scheme worth up to £3,750 per car.
The £650 million Electric Car Grant (ECG) will back UK and other manufacturers, with eligibility dependent on the highest manufacturing 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.
Drivers will start to benefit from discounts as soon as manufacturers successfully apply for their zero emission cars to be part of the grant scheme from 16 July 2025, with funding available until the 2028 to 2029 financial year.
With drivers citing upfront costs as a key barrier to adoption, the grant will narrow the upfront cost between petrol and electric vehicles, giving thousands more drivers access to savings of up to £1,500 a year in fuel and running costs compared to a petrol car. The discount means that zero emission cars are now cheaper to buy and run than ever before and comes on top of preferential tax rates, delivering real savings for working families.
Owning and buying an electric vehicle (EV) is becoming cheaper in the UK, with 2 in 5 of used electric cars sold at under £20,000 and 33 brand new electric cars available from under £30,000.
“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,” said Transport Secretary Heidi Alexander.
“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,” she said.
This latest move comes alongside the Zero Emission Vehicle (ZEV) Mandate, which requires manufacturers to sell increasing percentages of zero emission vehicles each year. Recent changes to the mandate give industry the certainty, stability and support they’ve been asking for, alongside crucial trade deals with the US, India and the European Union following the recent global economic headwinds.
