The Electric Car Grant 2025 - Here's What You Need To Know.
Summary
The UK’s new Electric Car Grant, launching 16 July 2025, offers up to £3,750 off qualifying new EVs (priced at £37,000 or below) to help tackle high upfront costs. £650 million in funding will run until 2029, with two support tiers based on sustainability standards.
When is the grant available?
Grants will be available starting from 16 July 2025, with the scheme funded through to the end of the 2028/29 financial year. The Electric Car Grant offers two levels of support: £3,750 for vehicles that are produced to the highest sustainability standards, and £1,500 for cars that meet some but not all environmental criteria.
This approach acknowledges the importance of tackling both embedded carbon emissions over a vehicle’s lifetime as well as outright tailpipe emissions. Vehicles that do not meet the minimum sustainability standards will not qualify for funding.
What else is being done to help EV adoption in the UK?
Alongside the new Electric Car grant, a £63 million fund has been earmarked to boost charging across the UK, under the new Charging‑Infrastructure Package.
£25 million will be made available for local authorities to install under‑pavement cabling, making home charging possible even without a driveway. This as well as 100,000 additional public chargers, taking the total from 82,000 to over 180,000 by 2029.
Whilst the most cost-effective way to charge an EV is on your driveway using an overnight tariff (as seen on our Charging Cost Calculator), the introduction of under-pavement cabling opens up the possibility of EV ownership for thousands more people.
Additionally, £30 million is being allocated to support businesses in transitioning their fleets to electric vehicles, alongside £8 million dedicated to installing chargers at more than 200 NHS sites nationwide.
With only 25.2% of new car sales electric, and a 28% target looming under the ZEV Mandate, this new grant could be pivotal in accelerating the UK’s switch to zero‑emission motoring.
Whether you’re hunting for your first EV runaround or advising fleet buyers, now is a prime moment to explore electric options. If you’ve been hesitating over the initial cost or charging access, the revived Electric Car Grant and enhanced infrastructure efforts may well tip the balance.
