Government launches new £3750 Electric Car Grant

Richard Aucock, Contributor
Tue, 15 Jul 2025

The government has announced a new £650m Electric Car Grant worth up to £3750 per car.

Cars priced at or under £37,000 will be eligible for the new Electric Car Grant (ECG), meaning motorists will benefit from savings of up to 10%.

The scheme effectively replaces the old Plug-in Car Grant, which was discontinued in June 2022 – arguably, said many critics, too early.

By introducing the new ECG, the government aims to help overcome a key barrier to EV adoption, the high upfront costs.

Whereas the average new petrol car costs around £34,000, EVs are significantly more expensive, averaging over £49,000.

By restricting the grant to EVs priced at £37k or below, the government aims to incentivise the launch of cheaper EVs, helping compound the savings.

Car firms have already targeted delivering EVs priced under £40k, to dodge the Electric Car Supplement for road tax. The prices of some models may now be cut further, so they're eligible for the ECG too. 

According to government figures, there are currently 34 new electric cars priced at under £30k.

The scheme opens on 16 July 2025, with funding available until the 2028/29 financial year.

It will be car manufactures, not car buyers, who apply for the ECG, meaning it will be applied automatically at the point of sale.

Eligibility will be based on "the highest manufacturing sustainability standards," says the government. This will factor in emissions produced during production.

It is understood this will incentivise EVs built locally, such as the Nissan Leaf and MINI Cooper Electric (which will be built in the UK from 2026), rather than some EVs built overseas, such as in China.

Details of which models are eligible and the amount of grant applied to each, will emerge in the coming weeks.

The government says drivers will benefit from discounts as soon as manufactures successfully apply for their zero emission cars to be part of the grant scheme.

"Within weeks, discounted cars should start appearing at dealerships," says RAC head of policy Simon Williams. "And as the biggest savings will be given to cars with the strongest ‘green’ manufacturing credentials, drivers will be picking models that are not only better for their wallets, but better for the planet too."

Adam Wood, MD of Renault UK, which made the best-selling EV for private buyers in April and May, said: "These incentives are extremely welcome and a much-needed signal that Government is ready to put tangible action behind the ambitious plans for the transition to electric vehicles that it has outlined."

Ask HJ

Will charging an EV via a three-pin domestic socket damage the battery?

I would like to purchase an EV but I am unable to have a home charging point installed for a while yet. Will it damage the battery if I charge the car via a 2.3kw 3-pin domestic socket, the extra time it takes is not an issue for me. I am getting conflicting advice from dealers for example. There is little guidance/info on their websites. I always thought it was best to slow charge batteries because they last longer or are EV batteries different?

As a general rule it is possible to charge an electric vehicle from a standard domestic socket, but many manufacturers recommend this is only done in case of emergencies while some do not recommend it at all, primarily due to safety concerns. While using a domestic socket will not cause harm to your EV's battery, typically the wiring in your home is not designed to support outputting at close to its capacity of 3kW for many hours at a time. Home charging points are designed for this purpose and have numerous safeguards to reduce the chances of a fire, as well as being able to charge at a faster rate. If you are unable to have a wallbox installed we would suggest using public charge points the majority of the time and only use a standard domestic socket as a last resort.

Answered by David Ross

More Questions