Making Electric Vehicles More Affordable for UK Drivers
In a major boost for the UK's transition to electric vehicles, the Government has announced the return of a grant scheme offering discounts of up to £3,750 on new electric cars. Aimed at making EV ownership more affordable for everyday drivers and businesses, the new £650 million Electric Car Grant (ECG) forms a key part of the Government’s wider Plan for Change.
From 16 July 2025, car manufacturers can apply to have their models included in the scheme. Eligible vehicles must be zero-emission, priced at £37,000 or less, and meet the highest standards of manufacturing sustainability.
Key Highlights of the Scheme
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Up to £3,750 off the price of a new electric vehicle
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Applies to new cars under £37,000
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Available to both private individuals and businesses
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Backed by a £650 million fund, available until the 2028/29 financial year
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Grant applied at point of sale – no paperwork for buyers
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Supports UK jobs and manufacturing standards
This move comes as part of the UK’s wider commitment to phase out new petrol and diesel vehicles by 2030, and is designed to reduce one of the biggest barriers to EV adoption – the higher upfront cost.
A Step Forward for Everyday Drivers
With more than 380,000 zero-emission cars registered last year, EV ownership is rising rapidly. Yet many drivers still cite initial purchase costs as a key reason for hesitating. The ECG addresses this directly, helping bridge the price gap between electric and petrol vehicles and putting real savings back into the pockets of working families.
In fact, electric cars can already save drivers up to £1,500 per year in fuel and running costs compared to traditional petrol vehicles – and this new grant only increases that benefit.
Growing EV Options and Affordability
The EV market is becoming increasingly accessible:
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Over 34 brand-new electric models are now available for under £30,000
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2 in 5 used electric cars are being sold for less than £20,000
Combined with preferential tax rates and ongoing investment in public charging infrastructure, owning an electric vehicle is more viable than ever.
Charging Made Easier Than Ever
The grant arrives alongside a host of other Government initiatives:
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Over 82,000 public chargepoints now available across the UK
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A new charger is installed every 30 minutes
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Additional support for on-street charging and charging at business depots
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A recent £63 million investment to support home charging for drivers without driveways
These developments aim to reassure drivers that EV charging is accessible at home, work, and on longer journeys.
Industry Reactions
The announcement has been widely welcomed across the automotive and EV charging sectors.
Simon Williams, Head of Policy at RAC, said:
“Within weeks, discounted cars should start appearing at dealerships across the country... drivers will be picking models that are not only better for their wallets, but better for the planet too.”
Vicky Read, CEO of ChargeUK, praised the move:
“This announcement is brilliant news – for drivers and for the UK’s transition to electric vehicles.”
Dan Caesar, CEO of Electric Vehicles UK, added:
“A generous grant like this gives a new group of buyers a gentle nudge into what is great tech... More than 9 out of 10 battery EV drivers will never revert.”
The Bigger Picture: UK Leadership in EV Adoption
With over £4.5 billion being invested to supercharge the switch to EVs, the UK is positioning itself as a global leader in zero-emission motoring. The ECG complements initiatives like the Zero Emission Vehicle (ZEV) Mandate, which requires manufacturers to increase the percentage of zero-emission vehicles they sell each year.
By reducing costs, supporting infrastructure and prioritising cleaner air, this grant scheme is a welcome and tangible step forward for British drivers.
Looking to Make the Switch to Electric?
Whether you’re a personal or business customer, now is the perfect time to explore leasing an electric vehicle. At Lincoln Vehicle Solutions, we offer a wide range of in-stock and factory order electric lease deals that may benefit from this new grant.
👉 Enquire today for a bespoke Personal or Business Lease quote and see how much you could save by switching to electric.