UK electric car grant scheme expansion: Eligible cars, discounts, and rules (2026 guide)
The UK government announced the electric car grant (ECG) on 15 July 2025, with manufacturers able to apply from 16 July 2025. The scheme offers discounts of up to £3,750 on eligible new electric cars priced at £37,000 or less.
On November 26 2025, during the Autumn Budget, Chancellor Rachel Reeves announced £1.3 billion in additional funding for the scheme, extending support through to 2030. The funding forms part of the government's wider strategy to accelerate EV adoption.
No further changes to the scheme were announced in the government's Spring Forecast on 3 March 2026.
This guide explains how the electric car grant works, which cars qualify, and how the price cap affects eligibility.
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How much is the UK electric car grant?
The electric car grant offers discounts on new battery-electric cars. There are two discount bands:
- Band 1: up to £3,750 off
- Band 2: up to £1,500 off
As of 11 March 2026, GOV.UK lists 48 eligible models across both bands: 9 in Band 1 and 39 in Band 2.
Vehicles are placed in each band based on environmental and sustainability criteria, including lifecycle emissions and supply-chain transparency.
Which cars qualify for the electric car grant?
Band 1 cars (up to £3,750 grant)
| Manufacturer | Eligible models |
|---|---|
| Citroën | ë-C5 Aircross Long Range |
| Ford | E-Tourneo Courier, Puma Gen-E |
| MINI | Countryman Electric |
| Nissan | LEAF, Micra (52 kWh) |
| Renault | 4; 5 (52 kWh), Alpine A290 |
Band 2 cars (up to £1,500 grant)
| Manufacturer | Eligible models |
|---|---|
| Citroën | ë-C3, ë-C3 Aircross, ë-C3 Urban Range, ë-C4, ë-C4 X, ë-C5 Aircross, ë-Berlingo, ë-SpaceTourer |
| Cupra | Born |
| DS | DS 3, N°4 |
| Hyundai | KONA Electric |
| Kia | EV4, PV5 Passenger |
| Nissan | Ariya, Micra (40kWh) |
| Peugeot | E-208, E-2008, E-308, E-408, E-Rifter, E-Traveller |
| Renault | 5 (40 kWh), Megane, Scenic |
| Skoda | Elroq, Enyaq |
| Toyota | C-HR+, Proace City Verso |
| Vauxhall | Astra Electric, Combo Life Electric, Corsa Electric, Frontera Electric, Grandland Electric, Mokka Electric, Vivaro Life Electric |
| Volkswagen | ID.3, ID.4, ID.5 |
Please note: This list is correct as of 11 March 2026. Please refer to the official GOV.UK page for the latest information.
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
- 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.
- 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.
- 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.
Electric car grant eligibility criteria
Not every EV qualifies for the scheme. Vehicles must meet several technical and environmental requirements:
| Requirement | Details |
|---|---|
| Vehicle type | Passenger car (category M1) |
| Emissions | 0 g/km CO₂ |
| Electric range | Minimum 100 miles (160 km) |
| Vehicle warranty | Minimum 3 years / 60,000 miles |
| Battery warranty | Minimum 8 years / 100,000 miles, including replacement if capacity falls below 70% during the first 8 years. |
| Sustainability | Manufacturer evidence required. |
| Approval | Variant must be approved through OZEV/VCA processes. |
Electric car grant price cap explained
To qualify, a car must have an RRP of £37,000 or less. For grant purposes, RRP includes VAT and mandatory extras such as delivery or administration fees, but excludes the first registration fee and first vehicle licence.
The interpolation family rule
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 variants in the same interpolation family as an approved sub-£37,000 model can still qualify, provided their list price does not exceed £42,000.
Grants for wheelchair accessible vehicles (WAVs)
Wheelchair Accessible Vehicle (WAV) grant
The government also offers a plug-in grant for electric Wheelchair Accessible Vehicles (WAVs) to help reduce the upfront cost of accessible zero-emission transport.
- Eligible vehicles can receive a discount of up to 35% off the purchase price, capped at £2,500.
- The grant is applied automatically by the dealer at the point of sale. Buyers do not need to apply separately.
- The vehicle must be new, fully electric, and converted to a WAV before its first registration.
- The base vehicle must have a list price of £50,000 or less, excluding the cost of conversion.
Which Motability cars are eligible for the EV grants?
Motability customers may also benefit from the electric car grant if their chosen vehicle meets the same criteria as retail buyers, including the required price cap, minimum range, and zero-emission status.
However, not all Motability vehicles will qualify. Many adapted models or higher-spec electric cars exceed the scheme's price limit, meaning they may fall outside the grant. Because eligibility can vary, it's best to check directly with Motability Operations or your chosen dealership before placing an order.
Separate support is also available through the government's Plug-in Wheelchair Accessible Vehicle Grant (PiWG), which provides a discount on eligible electric vehicles converted into wheelchair-accessible vehicles (WAVs).
At the time of writing, examples of base vehicles that can be converted into eligible WAVs include:
- Citroën ë-Berlingo
- Citroën ë-SpaceTourer Business M
- Citroën ë-SpaceTourer Business XL
- Ford E-Tourneo Courier
- Peugeot e-Rifter
- Vauxhall Vivaro-e Life Combi
The list of eligible base vehicles can change, so it's worth checking the official GOV.UK guidance for the latest approved models and converters.
Tips for checking electric car grant eligibility
Eligibility can vary depending on the exact model variant. Before buying an EV:
- Check the official GOV.UK eligibility list.
- Confirm the specific model variant.
- Ask the dealer which grant band applies.
- Request written confirmation of the discount.
EV chargepoint grants
Alongside the electric car grant, the government also offers EV chargepoint grants to help cover the cost of installing charging points at homes, rental properties and workplaces.
These schemes are managed by the Office for Zero Emission Vehicles (OZEV) and are designed to make EV charging more accessible, particularly for people who may find it harder to install a charger at home.
Many grants focus on supporting:
- Renters and flat owners.
- Households without off-street parking.
- Landlords installing chargepoints at rental properties.
- Businesses and workplaces installing EV chargers for staff or fleets.
Grant schemes, eligibility rules and funding levels can change over time, so it's best to check the latest guidance on GOV.UK before applying.
Autumn Budget 2025: Implications for EV drivers
The Autumn Budget 2025 introduced several policies affecting EV drivers:
eVED pay-per-mile tax proposal
In the Autumn Budget 2025, the government announced plans to introduce a mileage-based tax for electric vehicles, known as Electric Vehicle Excise Duty (eVED).
The proposed system would charge drivers based on how many miles they drive each year, rather than relying mainly on fuel duty revenues.
Under the current proposal:
- The tax could be introduced from 1 April 2028.
- Electric vehicles could pay around 3p per mile under current proposals.
- Plug-in hybrid vehicles could pay around 1.5p per mile.
The charge would apply alongside existing Vehicle Excise Duty (VED), rather than replacing it entirely.
As of March 2026, the government is consulting on how the system would work, including how mileage would be recorded and how payments would be collected.
The policy aims to address falling fuel duty revenues as more drivers switch from petrol and diesel cars to electric vehicles.
How much eVED will I pay for typical journeys?
| Distance (miles) | EV cost (3p per mile) | PHEV cost (1.5p per mile) | |
|---|---|---|---|
| London to Birmingham | 118 | £3.54 | £1.77 |
| London to Manchester | 200 | £6.00 | £3.00 |
| London to Newcastle | 283 | £8.49 | £4.25 |
| London to Glasgow | 403 | £12.09 | £6.05 |
Changes to the expensive car supplement
From 1 April 2026, the expensive car supplement (ECS) threshold for zero-emission cars increases from £40,000 to £50,000.
The change applies retrospectively to eligible EVs first registered from 1 April 2025.
Visit our car tax guide to learn more.
Proposed changes to employee car ownership scheme: Delayed until 2030
In the 2025 Autumn Budget, Reeves also announced that planned changes to employee car ownership schemes (ECOS) have been pushed back to 2030.
An ECOS, commonly offered by manufacturers and dealers, allows employees to purchase new cars at heavily discounted prices with low monthly payments and little or no interest. After around six months or 6,000 miles, the car is typically sold back and replaced under the same terms.
The Government had previously planned to bring ECOS within benefit-in-kind (BIK) tax rules from 6 April 2026. This change has now been deferred until 6 April 2030 to give the sector more time to prepare.
Further investment in public charging infrastructure and electrification
The Budget also includes £200 million to strengthen the public charging network and expand access to home or on-street charging for households without driveways.
In addition, a further £1.5 billion is being allocated to the DRIVE35 fund to support research, innovation, and investment in electric vehicle technologies, helping to accelerate the transition to zero-emission vehicles (ZEVs).
Other incentives for EV drivers
- Lower Benefit-in-Kind company car tax.
- Lower first-year Vehicle Excise Duty.
- Lower running costs.
- Local incentives such as discounted parking.
Frequently asked questions
If you ordered a car before its specific variant was officially approved under the electric car grant scheme, it may not automatically qualify for the discount.
Only vehicles that appear on the official eligibility list at the time of registration can receive the grant.
Manufacturers or dealers may choose to offer equivalent discounts, but this is not guaranteed, so it's best to confirm in writing before completing your purchase.
- 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.
No. The seller applies the discount at the point of sale.
No, the grant only applies to new electric cars.
This is unlikely. The Electric Car Grant is currently scheduled to run until 31 March 2030, according to the government's official grant listing. However, the scheme may be reviewed or amended in future.
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.
