The UK government has announced a new grant scheme offering up to £3,750 off the purchase price of new electric vehicles (EVs) in an effort to encourage more drivers to switch from petrol and diesel cars. The grants, which apply to vehicles costing up to £37,000, will be available for the next three years under a £650 million programme.
The Department for Transport (DfT) confirmed that the most environmentally friendly vehicles would receive the biggest discounts. Carmakers can begin applying for funding from Wednesday, and the RAC expects discounted EVs to appear in showrooms “within weeks.”
The initiative comes as part of the government’s wider plan to phase out the sale of new petrol and diesel vehicles by 2030. While the upfront cost of EVs has remained a barrier for many potential buyers, the government says this new discount — available directly at dealerships — will help reduce that obstacle.
“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,” said Transport Secretary Heidi Alexander.
However, concerns remain about the UK’s charging infrastructure. Currently, there are just 82,000 public charging points available to support a growing number of EVs — approximately 1.3 million are on the roads. The government has pledged £63 million to expand this infrastructure and aims to reach 300,000 charging points by 2030.
Steve Catlin, managing director of Vauxhall, welcomed the renewed grant scheme but highlighted that greater demand and faster rollout of public chargers are essential. “Forty percent of UK households don’t have a driveway, so home charging isn’t an option for them,” he noted.
The EV market is currently underperforming relative to targets, with only 21.6% of new vehicle sales being electric — short of the 28% goal for this year.
Some drivers remain cautious. Jimmy Kim, a 43-year-old from London, told the BBC that EVs don’t make financial sense for him right now. “The long-term ownership costs and vehicle depreciation just don’t add up,” he said.
Others, like Paul Cole, 38, are enthusiastic adopters. “Having made the switch, it’s brilliant,” he said. With a home charging point and solar panels installed, he has seen significant savings by charging his vehicle overnight.
The government insists that the new grants, combined with preferential tax rates for EVs and company car schemes, make electric vehicles more affordable than ever.
Labour’s shadow transport secretary Gareth Bacon, however, criticised the policy, saying it forces families into higher-cost vehicles. “Labour are putting net zero ahead of common sense and ahead of family finances,” he said.
Grants for electric cars had previously existed since 2011 but were scrapped in 2022 under Conservative leadership. The new scheme marks a revival of that policy, refocused to support both consumers and industry as the UK moves towards its 2030 climate target.
