Electric cars could soon become more affordable, with new Government grants offering savings of up to £3,750 on selected models. The scheme, aimed at encouraging drivers to switch from petrol and diesel vehicles, will apply to electric cars costing up to £37,000.
According to the Department for Transport (DfT), the most significant discounts will be reserved for environmentally friendly vehicles. Manufacturers can apply for the funding starting Wednesday, 16 July 16, and the RAC expects discounted vehicles to appear in dealerships within weeks.
The grants will be available at the point of purchase, meaning drivers can claim the discount directly through the dealer. Funded by a £650 million pot, the scheme will run for three years.
Discounts will range from £1,500 to £3,750, depending on the vehicle’s environmental performance.
This move marks a return to direct support for electric car buyers, after similar grants were scrapped in 2022. The original scheme, launched in 2011, offered up to £5,000 per vehicle but was gradually reduced before being withdrawn. At the time, the Government said it would focus funding on improving public charging infrastructure and supporting electric vans, taxis and motorcycles instead.
While the new grant scheme is welcome news for potential EV buyers, many still highlight the lack of public charging points as a significant barrier. UK roads have around 1.3m electric cars, but just 82,000 public chargers.
To help address this, the Government has also pledged £63m to expand the charging network.
Talk to us about your vehicle costs.