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03/08/2026

What is the Electric Car Grant?

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Written By Keith WR Jones

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Launched in August 2025, the Electric Car Grant (ECG) is a government-funded scheme designed to encourage more people to buy a new EV by making them more affordable. 

Its aim is to narrow the price gap between electric and petrol- or diesel-engined cars, making EVs more accessible to families who previously felt they were out of financial reach.

How much is the ECG discount worth?

There are two levels of discount available with the ECG. Band 1 is the highest which sees EV prices reduced by £3750, but few cars qualify for this maximum discount, limiting the choice of models.

Far more electric cars receive the ECG's smaller Band 2 discount which is worth £1500, ensuring a far broader selection to choose from.

Who is the ECG for?

Rather than simply targeting businesses and fleets or private buyers who can afford high-end EVs anyway, the ECG is aimed at everyday drivers and families. It's integral to the government's Plan for Change, a scheme which supports drivers with lower costs and greener transport, while backing British jobs and industry.

Unlike other grants and tax credit initiatives, the ECG doesn't require car buyers to fill out long and convoluted forms in order to benefit from it – instead, car manufacturers apply for their EVs to be considered. Those which the government deems eligible for either Band 1 or Band 2 have their advertised prices automatically discounted at the point of sale.

What are the ECG qualifying criteria?

Various considerations influence whether the government decides electric cars meet the criteria for either level of discount – or nothing at all – including the environmental impact of manufacturing and shipping them. This means European-made EVs are more likely to qualify than those produced further afield. 

Eligible models must be brand new and cost £37,000 or less, but there's a degree of flex in the regulations which enables EVs costing up to £42,000 to also be included. For that to happen, those more expensive versions must have identical electric motors, battery capacities and bodywork to a cheaper, eligible car.

Which electric cars receive the ECG discount?

These are the currently available electric cars eligible for the ECG when costing up to £42,000.

Note that these lists are updated regularly to reflect additional models that have newly qualified for the ECG or which have been moved from Band 2 to Band 1.

ECG Band 1 cars – discounted by £3750

ECG Band 2 cars – discounted by £1500

What about electric cars not receiving the ECG discount?

While the lists of EVs which are in receipt of the government grant discount is comprehensive, there are many other electric cars which would also eligible for the ECG if it was based on retail prices alone.

For many of those models, manufacturers have endeavoured to remain competitive by running their own incentive schemes, several of them with 'grant' in their names despite not being included in the ECG, in order to remain competitively priced in the market. In many instances, those discounts are at the Band 1 level, even though they would likely be in Band 2 if they were ECG-eligible. 

Several Chinese brands, including BYD, Geely and MG, have already announced plans to imminently move production of some of their electric models to European facilities. This will significantly reduce the emissions produced shipping the cars halfway around the globe, meaning they are far more likely to qualify for at least the Band 2 level ECG.

Currently available electric cars not in receipt of the ECG but which are priced in the eligibility window are:

What this means for you

Fundamentally it means that new electric cars which were already at the less expensive end of the pricing scale are even more affordable than before the ECG was introduced. Prices have fallen as a direct result of new EVs receiving the government-funded discounts as well as due to manufacturers' own incentive schemes. Electric cars in Band 1 are at least 10% cheaper than they were before the ECG's introduction.

Being in a position to purchase a new electric car means more people can enjoy running costs which are far lower than those for internal combustion-engined cars, while society as a whole benefits from the reduced carbon output overall as well as lower levels of exhaust emissions in our streets.

No, there isn't – the government-funded ECG is only applicable to new EVs which meet the various eligibilty criteria.

So far, used electric cars have tended to suffer from higher levels of depreciation on the used market than equivalent petrol- and diesel-engined cars, but there are signs that this is beginning to change. Whether the used values of EVs which received the ECG discount are lower than those which didn't remains to be seen in due course.

The ECG isn't the first time the UK government has offered help to EV buyers. Its forerunner was the Plug-in Car Grant (PiCG) which ran from 2011 until it was withdrawn suddenly in 2022. Unlike the ECG, the PiCG was also available to buyers of plug-in hybrid (PHEV) cars, albeit with lower levels of discount. 

PiCG discounts for electric cars started at up to £5000, dropping to £4500 in 2015 with a further fall to £3500 in 2018, before being pared back to £3000 in 2020.

Separate from the PiCG was the Plug-in Van Grant (PiVG) launched in 2012, which is still in operation with funding guaranteed through to at least 2027. Depending upon the van's weight, price and electric-only driving range, discounts can be as high as £2500 for small vans and £5000 for larger models.

Certainly among those priced below the ECG's absolute maximum of £42,000, yes most electric cars are less expensive than similar models powered by petrol and diesel engines. Even before the ECG's introduction, several manufacturers – notably Vauxhall – was already selling its electric models with price parity to mild hybrid-powered versions of the same ranges.

Over the next few years you can expect that EVs will continue to become even less expensive relative to combustion-engined alternatives. When you also factor in how much less expensive electric cars also are to run and maintain, demand for them is likely to soar.

Yes, but only in certain cases. The Electric Vehicle Homecharge Scheme (EVHS) now offers support only to people who rent their homes or who own their own flats which aren't at ground level, covering up to 75% of the installation cost up to a £350 cap.

Poeple living in Scotland might be eligible for further support from interest-free EV loans and chargepoint funding from the Energy Saving Trust and Transport Scotland, worth up to £400. Although the schemes remain active, they are subject to annual funding reviews, so when the cash is gone, it's gone.

Don't forget that many car companies have marketing tie-ups with wallbox manufacturers, providing discounted – if not totally free – installation. If it's not specifically referenced as part of the car's incentive package, it's worth asking if the cost of having a charger installed can be wrapped up within the deal you're negotiating.

Alongside the ECG, a £63 million infrastructure boost was announced in summer 2025, tackling some of the biggest barriers to EV ownership. Among the measures that money will be spent are:

  • £25 million for at-home charging via cross-pavement cables for homes without driveways or designated parking spaces.

  • New road signage for charging hubs on major roads, making it easier to find chargepoints while you're driving.

  • £8 million for NHS fleets, helping more than 200 sites install EV charging points.

  • Support for business depot charging, aimed at fleet operators managing vans, trucks and coaches.

According to government figures produced in conjunction with Zapmap, as of 1 January 2026 there were 116,052 public EV chargers at locations across the UK – almost double the number available on the same date just three years before.  Of that total, 12% are rapid chargers capable of delivering an energy flow of 50kW to 149kW, with a further 10% being ultra rapid units charging at rates of 150kW and above.