The UK government has launched a new electric vehicle (EV) grant, offering up to £3,750 off the price of a new electric car. If you’re considering making the switch from petrol or diesel to a greener ride, now is the perfect time.
Here’s everything you need to know about the new EV discount scheme, who qualifies, and how to take advantage of it.
Remember, you can obtain a range of FREE data insights about any UK registered EV by entering its vehicle registration number on Total Car Check.
What Is the 2025 Electric Car Grant?
Announced in July 2025, the UK Electric Car Grant is a £650 million government initiative to accelerate electric vehicle adoption and reduce transport emissions. The grant is part of a broader plan to phase out new petrol and diesel cars by 2030 and increase EV sales to 80% by 2030.
This new EV grant offers:
- Up to £3,750 off eligible electric cars
- Direct discounts applied at the dealership
- Funding available until the end of March 2029
How Much Can You Save on a New Electric Car?
There are two main tiers of savings under the 2025 electric vehicle grant:
- Band 1 EVs (most sustainable): £3,750 discount
- Band 2 EVs (still eco-friendly but less so): £1,500 discount
Only new electric vehicles under £37,000 are eligible. Luxury and higher-end EVs are excluded.
Who Is Eligible for the 2025 Electric Car Grant?
To qualify for the new electric car grant:
- The car must cost £37,000 or less before the discount
- It must meet strict lifecycle emission standards
- The car must be classified as Band 1 or Band 2 by the government based on sustainability
- Buyers must purchase from a participating dealership
This grant is designed to help everyday drivers, fleet operators, and families on a budget afford greener vehicles.
Additional Support: Charging Infrastructure Boost
The government isn’t just cutting EV prices—it’s also seeking to improve how and where you charge:
- £63 million will support home and depot charging for homes without driveways
- The UK now has over 82,000 public charging stations, with new ones installed every 30 minutes
- Grants and infrastructure are expanding in urban areas, towns, and rural regions alike
This is a major win for those who want an EV but can’t install a home charger today.
When Does the Grant Start?
- Dealers can apply from 16 July 2025
- Discounts will be available at the point of sale — no paperwork for buyers
- The grant is expected to remain available until March 2029, but budget limits could make early applications by dealers wise
What Are the Benefits of Buying an EV in 2025?
- Lower purchase price with government help
- Reduced fuel costs: EVs are up to 70% cheaper to run than petrol cars
- Low maintenance: No oil changes, fewer moving parts
- Zero emissions: Better for the environment and clean air zones
- Free or discounted parking in some cities
- Congestion charge exemptions in London and other urban centres
Final Thoughts: Why You Should Act Now
The 2025 UK Electric Car Grant is the most generous EV incentive in years. With clear eligibility, meaningful discounts, and strong infrastructure backing, it’s designed to make electric driving affordable and accessible to all.
If you’re about to start browsing forecourts for a new EV, make sure you ask dealer sales staff if the new grant has, or will, be applied to the prices they quote.
Key Takeaways:
- Save up to £3,750 on a new EV
- Cars must cost £37,000 or less
- Grants apply to Band 1 and Band 2 low-emission vehicles
- Point-of-sale discount through participating dealers
- Runs until 2029 (but don’t wait too long)
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