Feature image

A guide to the UK’s electric car grant scheme expansion


The UK Government has recently expanded its electric car grant scheme to make new EVs more affordable and speed up the transition to a greener road network.

Thinking about switching to an EV? This guide explains how the new grant works, which cars qualify, and how the price caps operate. We’ll also cover the other incentives that can help reduce the cost of electric motoring.

Get a free valuation

What is the electric car grant?

On 16 July 2025, the Government relaunched its electric car grant with £650 million in funding, giving buyers up to £3,750 off the price of a qualifying new EV.

You don’t need to apply for this grant yourself. It’s automatically applied by the dealer at the point of sale, if the car is on the approved list.

The scheme is due to run until 2028/29. By this time, the Government hopes that 52% of all new cars sold will be fully electric.

BMW EV

Which models are eligible for the EV grant?

Manufacturer Model Discount band
Citroën ë-C5 Aircross Long Range Band 1 – £3,750
Ford E-Tourneo Courier Band 1 – £3,750
Ford Puma Gen-E Band 1 – £3,750
Citroën ë-C3 / ë-C3 Aircross / ë-C3 Urban Range Band 2 – £1,500
Citroën ë-C4 / ë-C4 X Band 2 – £1,500
Citroën ë-C5 Aircross Band 2 – £1,500
Citroën ë-Berlingo Band 2 – £1,500
Citroën ë-SpaceTourer Band 2 – £1,500
Cupra Born Band 2 – £1,500
DS DS 3 Band 2 – £1,500
DS N°4 Band 2 – £1,500
MINI Countryman Electric Band 2 – £1,500
Nissan Ariya Band 2 – £1,500
Nissan Micra Band 2 – £1,500
Peugeot E-208 Band 2 – £1,500
Peugeot E-2008 Band 2 – £1,500
Peugeot E-308 Band 2 – £1,500
Peugeot E-408 Band 2 – £1,500
Peugeot E-Rifter Band 2 – £1,500
Peugeot E-Traveller Band 2 – £1,500
Renault 4 Band 2 – £1,500
Renault 5 Band 2 – £1,500
Renault / Alpine A290 Band 2 – £1,500
Renault Megane Band 2 – £1,500
Renault Scenic Band 2 – £1,500
Skoda Elroq Band 2 – £1,500
Skoda Enyaq Band 2 – £1,500
Toyota Proace City Verso Band 2 – £1,500
Vauxhall Astra Electric Band 2 – £1,500
Vauxhall Combo Life Electric Band 2 – £1,500
Vauxhall Corsa Electric Band 2 – £1,500
Vauxhall Frontera Electric Band 2 – £1,500
Vauxhall Grandland Electric Band 2 – £1,500
Vauxhall Mokka Electric Band 2 – £1,500
Vauxhall Vivaro Life Electric Band 2 – £1,500
Volkswagen ID.3 Band 2 – £1,500
Volkswagen ID.4 Band 2 – £1,500
Volkswagen ID.5 Band 2 – £1,500

Please note: This list is correct as of 13 November 2025. For the latest information, check the DVLA’s guide to vehicles eligible for a plug-in grant.

Electric car grant eligibility criteria

It’s important to note that not every EV on the market will meet the requirements for the scheme. Both the vehicle and its manufacturer must meet specific technical, environmental, and pricing standards.

Requirement
Vehicle type Passenger car (category M1) producing 0 g/km CO₂.
Electric range Minimum 100 miles (160 km) on a charge.
Warranty Minimum 3 years/60,000 miles (vehicle) and 8 years/100,000 miles (battery).
Price cap £37,000 list price limit, with interpolation flexibility (see below).
Sustainability The carmaker must provide evidence about the sustainability of vehicle manufacturing.
Approval process Vehicle variant must be approved and listed on the OZEV (Office for Zero Emission Vehicles) grant portal.
 

The £37k price cap and the ‘interpolation family’ rule

To qualify for the scheme, an EV’s recommended retail price (RRP) must not exceed £37,000 (before options, delivery, or registration).

However, the Government allows a small margin through the ‘interpolation family’ system, where several variants of the same model may share eligibility, if the higher trims are technically identical to the approved core model.

Some higher-spec variants can still qualify this way, although the list price must not exceed £42,000.

Ionic EV

Band 1 vs Band 2 discounts

The UK electric car scheme expansion introduced two grants, divided into two environmental performance bands:

Discount Which models qualify?
Band 1 £3,750 Models with top-tier sustainability and low lifecycle carbon emissions.
Band 2 £1,500 Models meeting the minimum zero-emission and efficiency standards.
 

Tips for checking EV grant eligibility

  1. Whilst other media sources can be helpful, you should always double-check the GOV.UK website - or ask the dealer at the point of sale.
  2. Eligibility is often variant-specific (e.g. trim, battery, and options). Always ask the dealer: “Is this model listed in the OZEV grant portal and which band is it in?” Dealers claim via the plug-in vehicle grant portal.
  3. If you see a car listed as eligible in the press, cross-check with the official list of eligible models - and get confirmation of the discount in writing before agreeing to buy.

Brands offering pre-grant discounts

Some manufacturers have launched their own discounts to bring EVs under the £37k limit and attract more buyers.

Citroën, Vauxhall, and Peugeot have adjusted pricing, so that certain popular models fit grant eligibility. For example, Citroën’s ë-C3 now starts from £20,595 after the grant, and Vauxhall offers extra savings and deposit contributions on its electric range.

Some dealers are also advertising extra savings to match or supplement the Band 2 discount, but these are retailer initiatives, not part of the Government scheme.

When comparing offers, always check whether a saving is an official Government grant, a manufacturer promotion, or a dealer discount - and whether they can be combined.

If you see a car listed as eligible in the press, cross-check with the official list of eligible models - and get confirmation of the discount in writing before agreeing to buy.

EV chargepoint grants

Alongside the car grant, there are several EV chargepoint grants to help fund home, workplace, and fleet installations.

What you can get Who qualifies
Home chargepoint grant Up to £350 or 75% of cost, whichever is lower. Renters and flat owners with private parking – and property owners and renters with only on-street parking.
Landlord grant
Up to 75% off wider installation costs (max £30,000), including wiring for future sockets.
Landlords. Visit the GOV.UK website to learn more.
Depot charging scheme Up to 75% of installation costs (max £1 million per organisation) for depot charging infrastructure. UK fleet operators. Visit the GOV.UK website to learn more.
 

Which Motability cars are eligible for the new EV grants?

Motability customers can also benefit from the electric car grant if their chosen vehicle meets the same price, range, and zero-emission criteria as retail buyers.

However, many adapted or premium EVs exceed the price limit – and not all Motability cars qualify. So, check directly with Motability Operations or your chosen dealership before ordering.

Other electric car rollout incentives

Beyond the grant, EV owners also benefit from several tax and cost-saving advantages:

  • Vehicle Excise Duty (VED): The first-year road tax on zero-emission cars is lower than hybrid, petrol, and diesel equivalents.
  • Benefit-in-Kind (BiK): Lower company-car tax rates are available for EVs and salary-sacrifice schemes. Visit our car tax guide to see the current VED and BiK tax rates.
  • Cheaper running costs: EVs are typically cheaper to run than traditionally fuelled vehicles.
  • Local incentives: EV drivers often benefit from free travel within emissions-based zones. Free or discounted parking is also available at some public charging locations.
  • Congestion Charge exemption: EVs are exempt from London’s Congestion Charge until 25th December 2025.
Mercedes EV

Frequently asked questions

If you ordered your car before its variant was officially approved, it might not automatically qualify for the grant. Only cars registered under the Government’s EV grant scheme are eligible.

Manufacturers and dealers can choose to honour equivalent discounts, but this isn’t guaranteed, so it’s best to confirm in writing.

  • Renault: Only orders that show the grant deduction on the invoice are eligible.
  • Nissan: Will review requests case by case for customers who already ordered but still want to claim the grant.
  • Citroën: Orders placed before 16 July aren’t eligible. Customers can cancel and reorder to qualify, but the original pricing or finance terms may not apply.
  • Confirm your variant’s eligibility before you buy.
  • Check whether it’s Band 1 (£3,750) or Band 2 (£1,500).
  • Combine with charger grants and tax perks for maximum savings.
  • Keep an eye on GOV.UK updates. New eligible models are added frequently.