Drivers lose out as £42k price cap slashes electric car grant options
August 29, 2025 by Siobhan Doyle
Car changing is a big deal
Eyeing up an EV model with a pricier trim that’s under the electric car grant? The DfT has closed that loophole with a £42,000 price cap.
The Department for Transport (DfT) has tightened up the rules on its Electric Car Grant (ECG), meaning fewer cars now qualify for discounts.
The scheme, which launched last month, offers buyers up to £3,750 off when choosing a new EV priced at £37,000 or under. The catch? Until now, eligibility was based on the cheapest version of a model. That meant if one trim slipped under the £37,000 limit, even the pricier versions of the same car could still bag a grant, so long as they have the same size battery.
Not anymore. A new cap has been introduced: only variants up to £42,000 will qualify. Anything above this is out.
Take the Nissan Ariya, for example, which already qualifies for the grant. Nissan recently launched a sub-£37k entry model, which meant that every front-wheel-drive version – right up to its £44,500 Evolve trim – was eligible for the £1,500 grant. But with the £42,000 threshold, those top-end versions are now excluded.
A DfT spokesperson said: “The electric car grant is putting money back in people’s pockets whilst also providing a vital boost for industry. The maximum price limit ensures only eligible cars priced at the lower end of the market can qualify for the discounts, ensuring government support is targeted.”
The £37,000 base limit remains, but pricier trims can only qualify if they cost no more than £5,000 over the base model.
This comes as the government confirmed the first cars to receive the full £3,750 discount: the Ford Puma Gen-E and the E-Tourneo Courier.
As it stands, 28 EVs now qualify for a grant, with more expected to be added soon – though choice is narrowing at the higher end.
Car change? Carwow!
Looking for a new set of wheels? With Carwow you can sell your car quickly and for a fair price – as well as find great offers on your next one. Whether you’re looking to buy a car brand new, are after something used or you want to explore car leasing options, Carwow is your one stop shop for new car deals.
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