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The Electric Car Grant 2025 - Here's What You Need To Know.

EV Grants & Schemes

9 min read Last updated 25th Sep 2025

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.

What is the Electric Car Grant?

The Electric Car Grant is a new government grant designed to make it easier and cheaper to own an electric vehicle. £650 million of grant funding will be made available from the 16th of July, with two different tiers of support.

By shaving up to £3,750 off the list price of qualifying EVs, the Government hopes to tackle one of the main barriers to ownership: the higher up‑front cost compared to petrol or diesel models.

By using our EV Savings Calculator to see how much you could save with an EV, you’ll also discover the significant reductions in running costs you can look forward to.

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 vehicles are eligible for the electric car grant?

At the time of writing, some vehicles are now confirmed to qualify for the New Electric Car Grant. There are still manufacturers that are going through the government's "sustainability" criteria to see if their vehicles qualify.

We can confirm that the MINI Countryman Electric qualifies for the New Electric Car Grant.

This means that if the purchase price of your chosen MINI Countryman Electric is within the Government’s limit, customers can benefit from the grant.

While the standard eligibility limit is £37,000, higher-spec versions of the MINI Countryman Electric can still qualify if priced at £42,000 or below. This is because the grant permits other variants of a model to qualify as long as at least one version of that model falls within the £37,000 limit.

What is the Purchase Price?

The Government defines the purchase price as the amount payable before the grant is applied. To qualify, the purchase price must not exceed £42,000.

Included in the purchase price: VAT, mandatory dealer extras (e.g. admin fees), first licence, number plates, the battery (including leased), manufacturer/dealer options affecting performance (battery capacity, drivetrain, power), paint, add-ons (e.g. roof boxes, tow bars), and any discounts/rebates (applied before the grant).

Not included: insurance, warranty, delivery fees, or the first registration fee.

How do I qualify for the electric car grant?

To qualify, the vehicle must first be approved by the government as a Band 1 or Band 2 battery-only electric car. The standard eligibility limit is a list price (MSRP) of £37,000 or less. If a particular model has at least one qualifying variant priced at £37,000 or below, other versions of the same model may still be eligible, provided they belong to the same ‘family’ of vehicles and their RRP does not exceed £42,000.

The level of support then depends on which grant band the vehicle falls into: Band 1 cars receive up to £3,750, while Band 2 cars receive up to £1,500.

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.

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