Government offers £3,750 EV discount: How to get an Electric Car Grant (ECG)

Drivers can benefit from a £3,750 discount when they switch to an eligible electric vehicle under the government's new Electric Car Grant (ECG). The grant scheme is worth a total of £650 million.

The discount will be available at the point of sale for eligible cars. Manufacturers can apply for the grant scheme from July 16, 2025, with funding available until the 2028/2029 financial year.

Transport Secretary Heidi Alexander said: "This EV grant will not only allow people to keep more of their hard-earned money – it’ll help our automotive sector seize one of the biggest opportunities of the 21st century." 

This latest scheme follows the government's £63 million package aimed at boosting Britain's electric vehicle revolution. The package includes support for at-home charging in households without driveways, transitioning NHS fleets to electric vehicles, and creating thousands of charge points around the country.

There is existing infrastructure to support EV drivers, with 82,000 public charge points available across the UK. Owning and buying an electric vehicle is also becoming cheaper. There are 33 brand new electric cars on the market that cost less than £30,000. Those looking at the used market will find that 2 in 5 used EVs currently cost less than £20,000.

Dan Caesar, CEO, Electric Vehicles UK, said: "A generous grant of this nature gives a new group of interested buyers, who might have thought that going electric was beyond them, a gentle nudge into what is great tech. More than 9 out of 10 battery EV drivers will never revert, and there’s a reason for that."

While buying an electric car is becoming more affordable, many drivers cite upfront costs as a key reason for not making the switch. This new grant could make it easier for households to switch to electric.

Which cars are eligible for the new EV grant?

Drivers can benefit from discounts of up to £3,750 when they buy an eligible electric car under the ECG scheme. To be eligible for the grant, the electric car must:

• Be new; this discount can only be claimed at the point of first registration
• Be priced at or under £37,000
• Produce 0g CO2/km
• Have a minimum battery range of 100 miles
• Have a warranty that makes certain guarantees

There are also additional manufacturer requirements that must be met before the manufacturer applies for the grant.

Information from Carwow suggests there are around 50 new electric car models priced under £37,000 that could benefit from the grant. Among them are popular models like the Fiat 500e and the Vauxhall Corsa Electric, which cost in the region of £26,000.

What EV discounts are available under the ECG scheme?

The ECG scheme offers two levels of discounts. Cars with the lowest carbon emission scores can get grants of £3,750. The second level of the grant is £1,500. This means eligible vehicles could be awarded grants of either £1,500 or £3,750, depending on the car's emissions scores.

Simon Williams, RAC head of policy, added: "Within weeks, discounted cars should start appearing at dealerships across the country. And, as the biggest savings will be given to cars with the strongest ‘green’ manufacturing credentials, drivers will be picking models that are not only better for their wallets, but better for the planet too." 

When can I get an EV discount under the ECG scheme?

Before manufacturers can start offering discounts, they need to apply and be approved for the ECG scheme. The scheme opens for applications on July 16, 2025. Applications will then be reviewed in the order in which they are received. It's expected it'll take up to one calendar month to review an application. This means you'll likely see the first discounted cars under this scheme at some point in August.

How much could I save if I switch to electric?

Electric vehicles may come with upfront costs like buying and installing a charger, but there are additional savings to be made.

For instance, there is a £25 million local authority scheme that will provide access to cheaper at-home charging. Under the new scheme, eligible EV owners will save around £1,500 a year in fuel and running costs compared to a petrol car.

In addition, there are existing grants offering discounts towards the cost of buying and installing a charge point socket for eligible EV drivers. One grant offers flat owners or renters up to £350 towards the cost of buying and installing a socket.

UK drivers already favour EVs and, with discounts worth up to £3,750 the ECG scheme is another step the government is taking towards supporting EV ownership. In 2024, the UK was the largest EV market in Europe and the third largest in the world, with more than 382,000 electric cars sold. New government support could increase this demand even further.