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What is the Electric Car Grant?
The Electric Car Grant is a new government initiative aimed at making electric vehicle ownership more accessible and affordable.
From 16 July 2025, £650 million in funding will be available, with two tiers of support based on sustainability criteria.
The grant offers up to £3,750 off the list price of eligible EVs, helping to reduce one of the biggest barriers to switching –
higher upfront costs compared to petrol or diesel vehicles.
Use our EV Savings Calculator to see how much you could save—not just on the purchase price, but on running costs too.
When is the grant available?
Grants will be available from 16 July 2025, with funding in place until the end of the 2028/29 financial year.
The Electric Car Grant provides two tiers of support: £3,750 for vehicles manufactured to the highest sustainability standards,
and £1,500 for those that meet partial environmental criteria.
This tiered approach recognises the need to address both lifetime embedded carbon emissions and tailpipe emissions.
Vehicles that fall short of the minimum sustainability requirements will not be eligible for the grant.
What vehicles are eligible for the Electric Car Grant?
As of now, the full list of eligible vehicles hasn’t been confirmed.
Manufacturers are awaiting clarification on the government's specific "sustainability" criteria to determine which models will qualify.
How do I qualify for the Electric Car Grant?
To be eligible, you must purchase a brand-new, battery-only electric vehicle with a list price of £37,000 or less.
Vehicles priced above this threshold will not qualify for the grant.
What else is being done to help EV adoption in the UK?
Alongside the new Electric Car Grant, a £63 million investment has been announced under the UK’s new Charging Infrastructure Package to improve EV charging access nationwide.
Of this, £25 million is allocated to help local authorities install under-pavement cabling, making it possible for people without driveways to charge at home—an important step towards broader EV accessibility. The plan also includes a boost of 100,000 new public charge points, taking the UK’s total from 82,000 to over 180,000 by 2029.
While the most cost-effective way to charge an EV remains overnight charging on a home driveway (as highlighted in our Charging Cost Calculator), this new funding helps remove a key barrier for many drivers who rely on on-street parking.
In addition, £30 million will support businesses transitioning to electric fleets, and £8 million will fund chargers across 200+ NHS sites, improving access for staff and visitors alike.
With only 25.2% of new car sales currently electric—and a 28% ZEV Mandate target fast approaching—this combination of grants and infrastructure upgrades could play a vital role in accelerating the UK's shift to zero-emission motoring.
Whether you're exploring your first EV or advising on fleet purchases, now is a prime time to consider making the switch. In fact, 85% of EV drivers say they wouldn't go back to a petrol or diesel vehicle.
Birchwood Motor Group – with locations in Eastbourne, Hastings, Washington, and Chichester
Contact your local Birchwood dealership today to explore the electric vehicles available with the latest government grant and book your test drive. Our friendly team of EV specialists is here to answer all your questions and guide you every step of the way—from choosing the right model to driving away in your new electric car with the support of money-saving incentives.
