Everything you need to know about the government’s electric car grant

The government’s new £650m electric car grant aims at making EVs more affordable, offering discounts of up to £3,750 on brand new electric vehicles. This forms part of the UK’s Plan for Change, designed to help households save money while accelerating the switch to greener, zero-emission cars.

All the EVs eligible for the grant will be revealed in the coming weeks, but here’s everything you need to know about the electric car grant so far.

1 August – Volkswagen is now offering a £1,500 grant guarantee on select ID3 and ID4 models when you order by 31 August and take delivery with the new ‘75’ plate from 1 September 2025.

And starting from today, Skoda is doing the same – £1,500 off select Elroq and Enyaq SUV models (excluding the Enyaq Coupe) when you order by 31 August and take delivery from 1 September 2025.

• • What support could you get?
  • What cars will be eligible?
  • Pre-grant discounts from some carmakers
  • What does the grant mean for you?
  • What else is the government doing?
  • What are carmakers doing?

What support could you get?

Car buyers can claim the discount directly at dealerships on electric cars priced under £37,000 – no separate application needed. Now that the grant has been approved, manufacturers can start applying for funding, meaning discounted EVs should start showing up in showrooms within weeks, according to the RAC.

With £650m allocated, the grant could subsidise around 173,000 electric cars at the full £3,750 discount – roughly half the number of EVs purchased in the UK last year.

The Electric Car Grant (ECG) will run until the 2028/29 financial year, potentially helping thousands of drivers get behind the wheel of cheaper electric cars.

Remember, you can buy a brand new or used car right here on Carwow. And you can sell your car, too. We’re here to help you through every step of your car-changing journey.

So, what cars will be eligible?

Only cars from brands committed to a Science-Based Target (SBT) for cutting emissions – and that have demonstrated real progress – will qualify. Nearly 50 new electric car models are expected to meet these sustainability criteria, with more likely to be confirmed soon.

There are two levels of support: the greenest models qualify for the full £3,750 discount, while cars that don’t quite meet the highest eco-standards still get £1,500 off.

Here’s a list of all the electric car models that could qualify for the grant if they meet the sustainability credentials:

#	Car	Price from	#	Car	Price from
1	Dacia Spring	£14,995	27	BYD Dolphin	£30,205
2	Leapmotor T03	£15,995	28	Volkswagen ID3	£30,860
3	BYD Dolphin Surf	£18,650	29	Citroen e-Berlingo	£31,240
4	Fiat Grande Panda	£21,035	30	Skoda Elroq	£31,510
5	Citroen e-C3	£22,095	31	Toyota Proace City Verso EV	£31,995
6	Renault 5	£22,995	32	Peugeot e-Rifter	£32,250
7	Hyundai Inster	£23,005	33	Vauxhall Mokka Electric	£32,430
8	Citroen e-C3 Aircross	£23,095	34	Renault Megane E-Tech	£32,495
9	Vauxhall Frontera Electric	£23,995	35	MINI Countryman Electric	£33,005
10	GWM Ora 03	£24,995	36	Kia EV3	£33,005
11	Fiat 500e	£25,035	37	Volvo EX30	£33,060
12	Vauxhall Corsa Electric	£26,780	38	Omoda E5	£33,065
13	MINI Cooper Electric	£26,905	39	Alpine A290	£33,500
14	Renault 4	£26,995	40	Alfa Romeo Junior Elettrica	£33,906
15	MG4	£26,995	41	Smart #3	£33,960
16	Citroen e-C4	£27,650	42	Vauxhall Astra Electric	£34,130
17	MGS5 EV	£28,495	43	Hyundai Kona Electric	£34,500
18	Citroen e-C4 X	£28,715	44	Kia EV4	£34,695
19	MINI Aceman	£28,905	45	Peugeot e-2008	£35,400
20	Smart #1	£29,960	46	Cupra Born	£35,690
21	Abarth 500e	£29,985	47	Vauxhall Grandland Electric	£36,455
22	Ford Puma Gen-E	£29,995	48	MG4 XPower	£36,495
23	Jeep Avenger	£29,999	49	Leapmotor C10	£36,500
24	Suzuki e-Vitara	£29,999	50	Abarth 600e	£36,985
25	Fiat 600e	£30,035	51	KGM Torres	£36,995
26	Peugeot e-208	£30,150	52	Skywell BE11	£36,995

Some brands are already offering pre-grant discounts

There’s been a lot of back and forth about whether Chinese car brands – known for offering some of the cheapest electric cars around – will be eligible for the government’s ‘second level grant’ of £1,500. Some reports say they might qualify based on their environmental credentials, while others suggest they could be left out entirely.

Instead of waiting around for a decision, brands such as Great Wall Motors, Leapmotor, and Skywell have gone ahead and launched their own discounts that match the grant. You can also find similar deals on popular models such as the MG S5 EV and MG4, on top of any other offers MG already has going.

And it’s not just Chinese brands getting in on the action – Alfa Romeo, Hyundai, Volvo, Smart, Volkswagen and Skoda are also offering discounts on certain models across their ranges.

Here’s all the EV discounts currently on offer at a glance:

• Great Wall Motors (GWM) – £3,750 off Ora 03
• Leapmotor – £3,750 off a C10
• MG – £1,500 off a S5 and MG4 over existing discounts
• Kia – £3,750 off an EV3 Air
• Hyundai – £3,750 off the Hyundai Inster
• Hyundai – £1,500 off the Kona Electric, Ioniq 5, Ioniq 6, Ioniq 5 N, and Ioniq 9
• Volvo – £1,500 off any new version of its EX30 model
• Skywell – £3,750 off BE11
• Smart – £3,500 off #1 and £2,500 off #3
• Volkswagen – £1,500 grant guarantee on select ID3 and ID4 models
• Skoda – £1,500 off select Elroq and Enyaq SUV models (excluding Enyaq Coupe)

Want to learn more? Head over to our dedicated page for the latest discounts outside of the government grant.

What does the grant mean for you?

Many drivers say the upfront cost of electric cars is a major barrier. This grant is designed to close that gap, making EVs more affordable from the get-go.

On top of the discount, electric cars can save you up to £1,500 a year on fuel and running costs compared to petrol cars. Combined with lower taxes and ongoing savings, switching to an EV is becoming an increasingly smart choice for families looking to save money.

The market is also getting more affordable, with two in five used electric cars sold for under £20,000 and 34 brand new models priced below £30,000.

EV charging is also booming, with over 82,000 public points across the country – and a new one popping up every 30 minutes. So whether you’re at home, work, or on a longer trip, charging your car is getting easier.

The grant could also change the game for car leasing. Rob Buckland, leasing director at Carwow Leasey, explains that once manufacturers are approved for the grant, the on-the-road (OTR) prices of qualifying electric cars will drop – and that customers will expect transparency around whether those savings are passed on to them.

What else is the government doing?

Along with the electric car grant, the government is investing £25m to help 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 setup will make it easier for people without driveways to charge their EVs at home with cheaper electricity, potentially saving some drivers up to £1,500 a year compared to petrol or diesel.

On top of that, another £30m is going towards helping businesses switch their fleets to electric, and £8m will bring chargers to over 200 NHS sites across the country.

The scheme also comes alongside the Zero Emission Vehicle mandate, which requires car manufacturers to sell more zero-emission vehicles every year. Updates to these rules are helping car companies feel confident about making more electric cars.

And for every driver, the government is putting a record £1.6bn into fixing potholes and freezing fuel duty at 5p until spring 2026 – which should save most drivers around £50-60 a year.

What are carmakers doing?

Original equipment manufacturers (OEMs) are getting involved with the new electric car grant by applying online to get their vehicles approved and manage the grant process.

However, Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders (SMMT), said the industry wasn’t asked for input before the grant was launched. While he welcomed the idea of support, he pointed out that it doesn’t help all brands equally – which isn’t ideal.

Some car models won’t qualify for the grant at all, which could make it harder for those brands to meet new zero-emissions rules. Hawes also noted that setting the grant limit at £37,000 effectively divides the market and leaves some buyers out.

Instead, the SMMT had been pushing for a VAT cut on EVs sold to private buyers, saying that would do more to help the people who really need support. “We get the ambition behind it,” said Hawes, “but it’s still not very clear.”

Here’s a list of Carwow’s best EV guides for you to check out:

• How to charge an electric car at home and on the road
• Electric car charger installation costs
• 10 best home EV chargers in the UK
• What are the main benefits of electric cars?
• Do you pay road tax on an electric car?
• How to charge an electric car with no driveway

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