Woman driving a car

Government launches electric car grant scheme

Drivers across the UK can now save £1,500 on selected new electric vehicles, as the government launches the first phase of its £650 million Electric Car Grant scheme to make EV ownership more affordable and accessible.

Transport Secretary Heidi Alexander confirmed today that the first four eligible models are now available with the discount automatically applied at the point of sale. No paperwork is required from customers.

The ECG scheme allows manufacturers to offer discounts on new EVs that meet high sustainability standards, helping to reduce upfront costs for consumers and stimulate investment in the UK’s automotive sector. Discounts of up to £3,750 will be available as more models are approved in the coming weeks.

The launch comes as the UK’s EV infrastructure continues to expand rapidly. Since July 2024, over 17,300 public chargepoints have been added, a 27% increase year-on-year, bringing the total to more than 82,000 nationwide. With one chargepoint added every 30 minutes, the government is on track to deliver 100,000+ chargepoints in the coming years.

The ECG complements other initiatives, including a £63 million package to improve home charging access for those without driveways. Drivers can now run their EVs for as little as 2p per mile, making journeys like London to Birmingham cost just £2.50.

The transport secretary commented:

“With the first four models approved today and more to come over the next few weeks, this summer we’re making owning an electric car cheaper, easier and a reality for thousands more people across the UK.

“Once again we’re delivering our Plan for Change by standing firmly on the side of motorists and manufacturers, driving down costs for consumers, supporting jobs and putting money back in people’s pockets.”

Electric cares QUOTE

The scheme is part of a wider £4.5 billion investment to accelerate the UK’s transition to electric vehicles. Britain was the largest EV market in Europe in 2024, with sales up 20% year-on-year. The ECG is expected to support job creation, industry growth, and consumer savings, while reinforcing the UK’s position as a global leader in clean transport.

This move follows other driver-focused policies, including a record £1.6 billion investment to tackle potholes and a fuel duty freeze until spring 2026, saving motorists an average of £59 per year.

 

Image credit: iStock

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