Electric Car Grant 2025: No Cars Get Full £3,750 Yet - Here's Why
Source: Vauxhall Press Room
What Is The UK Electric Car Grant 2025?
The Electric Car Grant is a £650 million government scheme launched on 16 July 2025 to support the transition to zero emission vehicles and incentivise sustainable automotive manufacturing. This represents the UK's most significant electric vehicle incentive since the original Plug-in Car Grant ended in June 2022.
The scheme operates on a two-tier system based on sustainability criteria:
Band 1 (£3,750 grant): For the most sustainably produced cars with the lowest carbon emission scores
Band 2 (£1,500 grant): For cars that meet some environmental criteria
Key Features of the Electric Car Grant:
No paperwork required: The discount is automatically applied in the purchase of the vehicle and customers do not need to complete any paperwork
Price cap: Only electric vehicles priced at or under £37,000 qualify
Funding timeline: The scheme has funding available until financial year 2028 to 2029
Manufacturing standards: Eligibility is dependent on the highest manufacturing sustainability standards
Which Electric Cars Are Eligible For The Grant?
There are 24 new models eligible for the Electric Car Grant scheme, with more due to be announced soon. Here's the current list of eligible vehicles:
Currently Approved Models (£1,500 Grant):
Citroën - ë-C3, ë–C4, ë-C5 and the ë-Berlingo
Nissan - Including the new Nissan Micra
Renault - Including the Renault 5
Vauxhall - Including the Vauxhall Corsa Electric
Cupra - Including the Cupra Born
Peugeot - Including the Peugeot e-2008
Volkswagen - Including the Volkswagen ID.3
All the models announced so far have received the lower discount of £1,500, but certain cars are expected to be eligible for the maximum £3,750 grant amount. You can see all the best electric cars to salary sacrifice that qualify for grants.
Notable Exclusions:
Cars hailing from China are unlikely to qualify for the ECG due to the scheme's lifecycle carbon cost approach that penalises vehicles or batteries assembled in countries deemed to have an electricity grid with 'high' levels of carbon emissions per kW. This affects Chinese electric cars significantly.
No Cars Have Received The Full £3,750 Grant
A critical development since the scheme's launch is that no model thus far has received the full £3,750 Band 1 grant. This reflects the extremely strict sustainability criteria the government has implemented.
Why No Cars Qualify For Band 1:
Strict Science-Based Targets: Vehicle manufacturers must evidence that the company producing the vehicle holds a Science Based Target that has been verified by the Science Based Target Initiative
Production Emissions Assessment: The amount of grant available per vehicle will depend on the level of emissions associated with production of the vehicle. Emissions from vehicle production are assessed against the carbon intensity of the electricity grid in the country where vehicle assembly and battery production are located
Supply Chain Requirements: Band One classification (£3,750 grant) requires full SBT validation plus additional criteria including renewable energy usage above 80%
The EV market is responding by manufacturers lowering prices independently, with brands like Volvo, Fiat, Hyundai, and MG offering their own discounts.
How The Electric Car Grant Works
For Consumers:
Choose an eligible vehicle priced under £37,000
Visit a dealership - the discount applies automatically
No application needed - manufacturers handle all paperwork
Immediate savings - discount applied at point of sale
For Manufacturers:
Car manufacturers can apply for vehicle eligibility for the grant from 16 July 2025 through the Department for Transport's online portal.
Combining EV Grants With Salary Sacrifice
The Electric Car Grant works perfectly alongside electric car salary sacrifice schemes, creating unprecedented savings opportunities. The Electric Car Scheme offers the UK's leading salary sacrifice programme.
Example Savings Calculation:
Car price: £35,000 (pre-grant)
Grant discount: £1,500
Net price: £33,500
Salary sacrifice savings: 20-50% (with 3% BiK rate)
Total potential annual savings: £2,000+
Learn more about the best electric cars to salary sacrifice that qualify for grants, including small electric cars, family cars, and EVs under £250 per month.
Previous EV Grants (No Longer Available)
The Plug-in Car Grant (2011-2022)
The original scheme offered up to £1,500 off electric vehicles and supported nearly half a million EVs over its decade-long run. In June 2022 it unfortunately ended as the government shifted focus to charging infrastructure.
Electric Vehicle Homecharge Scheme (2014-2022)
It was designed to give funding up to £350 on the cost of installing EV charging devices at domestic properties across the UK. 340,222 domestic charging devices were installed under the EVHS, with a grant total of £140.8 million.
This was replaced by the EV Chargepoint Grant, available only to flats and rental properties.
Additional EV Support Available in 2025
Charging Infrastructure Investment:
The government announced a £63 million investment package to supercharge Britain's electric vehicle infrastructure, including £25 million for local authorities to expand access to cheaper at-home charging.
Commercial Vehicle Grants:
The Plug-in van grant has been extended for another year, offering up to £2,500 for small vans and up to £5,000 for larger vans up to 4.25 tonnes.
Workplace Charging Support:
Employers can access funding through the Workplace Charging Scheme to install charging points for employees.
Home Charging Solutions:
Learn about EV charger installation costs and discover ways to save money on EV charging.
How To Maximise Your EV Savings
Choose grant-eligible vehicles under £37,000 from our eligible cars list
Consider salary sacrifice for 20-50% additional savings
Take advantage of low BiK rates (currently 3% for 2025/26)
Factor in running cost savings of up to £1,500 annually
Explore workplace benefits through your employer
Calculate your potential savings with our comprehensive tool, or explore used electric car options for additional affordability.
What This Means For UK Drivers
The Electric Car Grant represents a significant step towards making electric vehicles more accessible. While the full £3,750 grant remains elusive due to strict sustainability criteria, the £1,500 discount available on approved models, combined with salary sacrifice schemes, makes electric vehicle ownership more affordable than ever.
With over 382,000 electric cars sold in 2024 – up a fifth on the previous year – there's never been a better time to switch to EVs.
Next Steps:
Explore eligible vehicles for the grant
Consider electric car salary sacrifice for maximum savings
Understand how EV charging works
Compare the best electric cars available through salary sacrifice
Learn about EV range and performance considerations
Explore business benefits of offering EV schemes
The combination of government grants and salary sacrifice schemes creates an unprecedented opportunity for UK drivers to access premium electric vehicles at affordable rates, supporting the transition to sustainable transport while delivering significant personal savings.
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Last updated: 21/08/2025
Our pricing is based on data collected from The Electric Car Scheme quote tool. All final pricing is inclusive of VAT. All prices above are based on the following lease terms; 10,000 miles pa, 36 months, and are inclusive of Maintenance and Breakdown Cover. The Electric Car Scheme’s terms and conditions apply. All deals are subject to credit approval and availability. All deals are subject to excess mileage and damage charges. Prices are calculated based on the following tax saving assumptions; England & Wales, 40% tax rate. The above prices were calculated using a flat payment profile. The Electric Car Scheme Limited provides services for the administration of your salary sacrifice employee benefits. The Electric Car Scheme Holdings Limited is a member of the BVRLA (10608), is authorised and regulated by the FCA under FRN 968270, is an Appointed Representative of Marshall Management Services Ltd under FRN 667174, and is a credit broker and not a lender or insurance provider.
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