UK Government Rolls Out New £650m Grant Scheme For Electric Vehicles
Electric car buyers in the UK are set to save up to £3,750 on new vehicles, thanks to a £650 million grant scheme unveiled by the government. Aimed at helping more people afford EVs and speeding up the switch from petrol and diesel cars, the plan offers discounts at the point of sale for eligible electric cars priced under £37,000. The size of the discount will depend on how environmentally friendly the car’s manufacturing process is, with the greenest models getting the biggest cuts.
Transport Secretary Heidi Alexander called the scheme part of the government’s "Plan for Change", saying it will "allow people to keep more of their hard-earned money" and help the UK automotive sector thrive. With 82,000 public chargepoints now installed in the UK and new ones being added roughly every 30 minutes, the infrastructure to support the shift towards electric vehicles is rapidly expanding.
But not all vehicles will qualify. Models with higher emissions from production, especially those made in countries with carbon-heavy electricity grids or lacking sustainability commitments, won’t be eligible for the full discount—or any at all. EVs from brands like Tesla or some Chinese manufacturers could be left out due to price or emissions concerns.
Industry leaders have welcomed the move, calling it long overdue. RAC’s Simon Williams said discounted models could start hitting showrooms "within weeks", while others noted this could close the price gap with petrol cars and make EVs a viable option for more households. The grant will run until 2029, and while it won't cover used EVs, the government hopes this will help boost sales, now lagging behind its 28% target for 2025.
