On July 15th 2025, Transport Secretary Heidi Alexander MP announced a new Electric Car Grant (ECG) from the Government, designed to reduce the cost of EVs for British buyers.
Grants come in two levels of either £3,750 (Band 1) or £1,500 (Band 2) per car, provided that car costs £37,000 or less, awarded according to the sustainability of that car’s production processes. In total, £650 million of grant funding will be available until the 2028/29 financial year, or until such a time as the funds run out.
On 28th August 2025, it was announced that two Ford models would be the first to qualify for the full £3,750 Band 1 discount. These are the Ford E-Tourneo Courier MPV and the Ford Puma Gen-E - the electric version of one of the UK's best-selling cars. Those are the only two models that have so far qualified for the highest level of government support.
With drivers citing relatively high upfront purchase costs as a barrier to electric car adoption, the move is designed to narrow the price gap between electric cars and petrol ones, making EVs more accessible, and so easing the UK’s transition to zero-emission electric vehicles. The grants are also designed to incentivise more sustainable automotive manufacturing. The scheme has been put in place to support the Government’s manifesto pledge to phase out the sale of new petrol and diesel cars by 2030.
The government has also recently confirmed that is has closed a loophole whereby cars costing significantly more than the £37,000 cut-off point could be eligible for a grant provided the entry point of the range was sufficiently low. That still exists to a certain extent, but has now been capped to a maximum value of £42,000.
Here’s what else we know so far, and what it all means for you…
2025 Electric Car Grant:
- Which Electric Car Brands are already offering discounts?
- Do I qualify for the Electric Car Grant?
- When does the grant scheme take effect?
- Is the EV I’m considering eligible for the grant?
- How much is the grant?
- Is anything else being done by the Government to ease my transition into an electric vehicle?
Which Electric Car Brands are offering discounts?
As of the end of August, 28 models are officially eligible for the ECG benefit.
However, several other manufacturers have also announced discounts on their electric models outside of the formal grant. These include Hyundai, Skoda, Volvo, Alfa Romeo and several Chinese-owned brands (which are likely to have the most trouble meeting the government's sustainability criteria). As an added bonus, some of the discounts are also being applied to models with a list price above the government's £37,000 grant ceiling. Here are the EV makes and models currently being offered with discounts, including the official grants:
Alfa Romeo
The Alfa Romeo Junior Elettrica – the first EV from the illustrious Italian brand and built using the same platform as the Peugeot E-2008 – is now £1,500 cheaper, meaning it starts from £32,405.
Alpine
The firm's new A290 electric hot hatch qualifies for the level-two grant of £1,500.
Citroen
Citroen can claim the honour of being the first brand to officially qualify for the Electric Car Grant. Its e-C3, e-C3 Aircross, e-C4, e-C4 X, e-C5 Aircross, e-SpaceTourer and e-Berlingo (M versions only) all get the Level 2 (£1,500) discount because they are assembled in Europe. That brings the price of the new e-C3 down to £20,595.
Cupra
Cupra has announced that lower-end versions of the Born hatchback - that's the V1, V2 and V3 versions - have qualified for the Government's level-two grant of £1,500.
DS Automobiles
Both the supermini-sized DS 3 and slightly larger DS N°4 (previously known as the DS 4) qualify for the £1,500 grant.
Fiat
Fiat's E-Grant was originally offered back in June 2023, and has now been re-introduced. It means that the 500e, 600e, Abarth 500e and Abarth 600e all qualify for a £1,500 discount from list price.
Ford
The announcement that Ford is the only car maker to satisfy the UK Government's most stringent sustainability criteria means that the Ford Puma Gen-E now starts at £26,495, which is more than £2,000 less than its petrol-hybrid counterpart. The Ford e-Tourneo Courier MPV also qualifies for the full discount.
Great Wall Motors (GWM)
The GWM Ora 03 is being offered with a £3,750 discount, meaning the Vauxhall Corsa Electric rival (that's actually closer in size to the much more expensive Volkswagen ID.3) is now available for as little as £21,425.
Hyundai
The impressive and funky Hyundai Inster electric city car has been given £3,750 off by the Korean manufacturer, meaning it now starts from under the £20,000 barrier.
Other discounted cars in the Hyundai range only get £1,500 price reductions, but these include the Konda Electric, the Ioniq 5 (even the high-performance and extremely enjoyable Ioniq 5 N), The Ioniq 6 and the recently launched Ioniq 9 family SUV.
Kia
The popular and award-winning Kia EV3 in 'Air' trim is now £3,750 cheaper, which should drop the headline price for this entry-level model below £30,000.
Leapmotor
Leapmotor is a new brand and a new entrant into European and UK markets, but is 51% owned by car-making giant Stellantis (the owner of the Fiat, Citroen and Vauxhall brands among others), so it's not an entirely unknown quantity. The spacious and well-equipped Leapmotor C10 might not be the most lovable SUV around, but it can now be had for £3,750 less, making it available from £32,750.
The much smaller Leapmotor TO3 city car, meanwhile, has also benefitted from a £1,500 price drop, making it a seriously tempting £14,495.
MG
MG, owned by Chinese state car manufacturer SAIC, has become an increasingly popular player in the UK car market over the past few years, has announced its own £1,500 discount on the entire MG4 electric hatchback range and the MGS5 EV SUV. This discount will be applied on top of whatever MG can secure from the government's official electric car grant.
Nissan
The Japanese firm has announced that all but three versions of the Ariya SUV have qualified for the £1,500 level-two grant, bringing starting prices for the range down to £33,500. The new Micra electric supermini also qualifies for the same level of grant, with the range now starting at £21,495.
Peugeot
Peugeot has had official confirmation from the UK Government that its e-208, e-2008 and e-Rifter models have qualified for the level-two grant of £1,500. The e-308, e-308 SW, e-408 and e-Traveller have also subsequently qualified for the official ECG.
Renault
Renault was the second manufacturer - behind Citroen - to get approval for the grant. All the electric cars in the French firm's extensive range qualify for Level 2 grants of £1,500 by virtue of being built in Europe. That takes the starting price of the super-cool Renault 5 down to £21,495.
Skoda
Skoda is currently offering the VW Group's Grant Guarantee between September 1-21, 2025, meaning that Elroq SE, SE L, Edition and Sportline trims, plus Enyaq Sl, SE L and Edition 60 trims qualify for a £1,500 discount, provided delivery occurs after September 22nd.
Skywell
The Skywell BE11 has been reduced by £3,750 to bring its potential entry-level price to £27,245. Sure, it's not the most accomplished offering in the mid-sized electric SUV segment, but it's a rival for the likes of the Volkswagen ID.4 – and the entry price for that model is almost £40,000.
Vauxhall
Almost all of Vauxhall's electric car range has qualified for the level-two grant of £1,500. That includes the electric versions of the Corsa, Mokka, Frontera, Astra, Astra Sports Tourer, Grandland and Combo Life. The only car not to qualify so far is the electric Vauxhall Vivaro Life.
Volkswagen
VW has confirmed that a number of versions of its ID.3 electric hatchbvack qualify for the level-two grant of £1,500, meaning that prices now start below £30,000. Additionally, it is offering its own Grant Guarantee of £1,500 on the ID.4 for customers ordering between September 1 and September 21 2025, provided delivery takes place after September 22nd.
Volvo
The price of the compact Volvo EX30 SUV has been cut by £1,500, though its list price started comfortably above the £37,000 cut-off for government assistance. It's now available from £40,860.
Do I qualify for the Electric Car Grant?
If you buy an electric car that’s eligible for the grant scheme, then yes. Details about what this entails are scant at this stage, but we will update this article as soon as we know more.
When does the grant scheme take effect?
Grants are available as of July 16th 2025, the day after the original announcement. Grants are subject to confirmation of vehicle eligibility by the Department for Transport. It will run until the 2028/29 financial year, or until the total funding pot of £650 million has run out.
Is the EV I’m considering eligible for the grant?
Grants will be available for qualifying vehicles that are brand new and priced at £37,000 or below. Manufacturers have to apply to the Department of Transport for their cars to be considered for eligibility, and as more and more models are approved, an updated list of eligible vehicles will appear on the DfT website.
The minimum environmental standard for eligibility is for the manufacturer to hold a verified science-based target. This is essentially a commitment made to the Government by corporate entities to reduce their environmental impact, the validity of which is then independently verified by the Science Based Targets Initiative. If an electric vehicle does not meet this minimum sustainability standard, it will not be eligible for a grant.
How much is the grant?
Assuming that a vehicle meets this minimum standard and qualifies for a grant, the amount will depend on the level of emissions associated with the vehicle’s production. Those vehicles that meet the minimum standard will qualify for a grant of £1,500, while the most sustainably produced cars get an improved grant of £3,750. Precisely how the sustainability of a car’s production is measured and quantified still remains unclear at this stage.
Is anything else being done by the Government to ease my transition into an electric vehicle?
The DfT’s announcement of the Electric Car Grants comes just days after the announcement of a wider package of measures to improve public electric car charging infrastructure. This includes £25 million to deliver cross-pavement charging channels (helping with home charging for those with no driveway), £30 million to install charging points at depots for vans, buses, coaches and HGVs (aiding the transition of the haulage and mass transport sectors), and £8 million for installing chargers at NHS sites, and improving charger signage on major roads.