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£650m Electric Car Grant scheme subsidises new EV sales

Drivers can claim discount of up to £3,750 on electric cars

Mark Moran
15 July 2025
Heidi Alexander
Heidi Alexander
 

A new £650m grant fund has been launched by the UK government to support sales of electric cars.

With drivers citing upfront costs as a key barrier to adoption, the government hopes the Electric Car Grant (ECG) will narrow the upfront cost between petrol and electric vehicles, giving more people access to savings of up to £1,500 a year in fuel and running costs compared to a petrol car.

Discounts up to £3,750 will be available via the ECG at the point of sale for eligible new...

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