Is the EV grant making a comeback?

July 14, 2025 by

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Electric cars might soon be way cheaper, as the government looks to bring back EV grants in a new £700m push to help more people make the switch.

Buying an electric car in the UK might soon get a whole lot cheaper. That’s because the government is preparing a big £700m plan to cut prices and make charging easier.

This investment could also bring back the popular plug-in car grant, which helped lower the cost of new electric cars before it was scrapped in 2022.

Transport Secretary Heidi Alexander said we’ll hear more on Tuesday about plans to make EVs more affordable for everyone.

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The government is setting aside over £640m to help lower the upfront cost of buying an electric car, according to the Telegraph. This is expected to be similar to the old Plug-In Car Grant, which gave buyers £1,500 off the price of a new EV.

There may also be bigger incentives for EVs made right here in the UK, such as Nissans, to support local jobs and manufacturing.

But that’s not all. The government is also putting £25m toward helping local councils install “cross-pavement” charging solutions. These involve digging a small trench in the pavement with a flap that lets a charging cable safely cross the road without causing a trip hazard.

This new setup will help people without driveways charge at home using cheaper electricity, potentially saving some drivers up to £1,500 a year compared to petrol or diesel.

On top of that, another £30m will help businesses switch their fleets to electric, and £8m will bring chargers to over 200 NHS sites nationwide.

So, why the big push now? Private sales of electric cars have hit a bit of a slump. This year, sales to regular buyers have dropped nearly 11%, and less than one in five new electric cars are going to individuals instead of companies or fleets.

Industry groups aren’t happy about it. A bunch of over 30 companies, from leasing firms to charging networks and insurers, have asked the government to step in and support both new and used electric car markets. They say the used market is actually the best way to get more people driving EVs without breaking the bank.

This comes after a report by the British Vehicle Rental and Leasing Association (BVRLA) showed used EV prices are falling fast, which is costing the leasing industry millions and slowing down the rollout of electric cars overall.

The average used EV price has fallen 46% between 2021 and 2024, compared to 19% for cars with an internal combustion engine (ICE).

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