Contributor
Climate Connections
Date
18 July 2025
Drivers across the UK will soon enjoy discounts on dozens of new electric car models as a new £650 million electric vehicle grant scheme worth up to £3,750 per car has been annouced, putting more money back in working people’s pockets as part of the Plan for Change and making owning an electric car a reality for thousands.
Supporting the manifesto commitment to phase out the sale of new petrol and diesel cars by 2030, the £650 million Electric Car Grant (ECG) will back UK and other manufacturers, with eligibility dependent on the highest manufacturing sustainability standards. Discounts up to £3,750 will be available at the point of sale for new eligible electric cars priced at or under £37,000.
Drivers will start to benefit from discounts as soon as manufacturers successfully apply for their zero emission cars to be part of the grant scheme from 16 July 2025, with funding available until the 2028 to 2029 financial year.
With drivers citing upfront costs as a key barrier to adoption, the grant will narrow the upfront cost between petrol and electric vehicles, giving thousands more drivers access to savings of up to £1,500 a year in fuel and running costs compared to a petrol car. The discount means that zero emission cars are now cheaper to buy and run than ever before and comes on top of preferential tax rates, delivering real savings for working families.
Owning and buying an electric vehicle (EV) is becoming cheaper, with 2 in 5 of used electric cars sold at under £20,000 and 33 brand new electric cars available from under £30,000.
The latest update also comes as the UK hits over 82,000 public chargepoints nationwide – with one added every 30 minutes – giving peace of mind to drivers that they will be able to charge conveniently at home, work or on longer journeys.
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