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The Electric Car Grant Is Back – And It’s a Big Win for UK Drivers

Big news was announced last week for UK car buyers: The government has just brought back the electric car grant – and this time, it’s got private buyers front and centre. If you’ve been holding off purchasing an EV because of the price, this could be your time to make the switch.

Up to £3,750 Off a Brand-New EV? Yes, please.

At a glance, from July 16th, the new Electric Car Grant (ECG) will give private buyers up to £3,750 off a new electric car, but the car must be priced at £37,000 or less and meet specific environmental standards to be eligible for the grant.

There are two bands that have been introduced to allow for different requirements:

•    Band 1 cars (the most climate-friendly) get the full £3,750 discount

•    Band 2 cars still snag a helpful £1,500 off

That means popular electric models like the Electric Mokka and the OMODA E5 could become even more appealing – and affordable. Vehicles that do not meet the minimum sustainability standards will not be eligible for any grant.

Why Now?

Let’s be honest: EV adoption among private drivers has slowed. In fact, less than 20% of new EVs are currently bought by individuals – most are snapped up by fleets and businesses. The cost of switching, especially during a cost-of-living crisis, has simply been too high for many households, so now the government has acted to find a resolution.

Who’s Eligible?

To qualify for the grant:

•    The EV must be a brand-new vehicle
•    Priced under £37,000
•    100% electric (no hybrids)
•    Produced by a manufacturer with Science-Based Targets for reducing carbon emissions

The grant will be applied at the dealership, making the process simple and seamless for the buyer.


Charging Up the Nation

To back up the grant, the government is also investing £63 million to enhance the UK’s charging network to increase consumer confidence:

•    £25m for on-street chargers in residential areas
•    £30m for faster public and motorway charging
•    Plus, funding to help local councils set up EV infrastructure

With over 82,000 public charge points already live, this is another step toward making EV ownership easier for everyone.

Final Thoughts

This is great news for everyday drivers who want to go electric but previously couldn’t justify the cost. With meaningful discounts, clearer eligibility, and growing infrastructure, this is the best time to make the switch. 

Thinking about buying an EV soon? View our electric vehicle line-up to learn more about how switching to electric can enhance your drive.

Don't want to wait? Leapmotor have already introduced their own EV Grant ahead of the Government Scheme offering UK car buyers up to £3,750 off the brand’s electric car range, which is made up of the Leapmotor C10 SUV and T03 hatchback. All models also come with the added benefit of 0% APR on PCP finance offers. 

About the author

Elizabeth Scott

Digital Marketing Specialist for Greenhous Group

Elizabeth.scott@greenhous.co.uk

07484 477198