Four More EVs Qualify for £3,750 Electric Car Grant as Government Invests £1.5bn
Source: Alpinecars
The UK's Electric Car Grant scheme has expanded significantly today (Wednesday 3 December), with four popular models from BMW and Renault joining the top tier of support. This development doubles the number of electric vehicles eligible for the maximum £3,750 discount, providing more choice and affordability for drivers considering the switch to electric.
The announcement comes alongside substantial new Government investment, with Transport Secretary Heidi Alexander confirming £1.5 billion in additional funding to support the UK's electric vehicle revolution. This includes extending the grant scheme through to 2030 and expanding the nation's charging infrastructure.
Which New Models Qualify for the Maximum £3,750 Grant?
Four models have been added to the top band of the Electric Car Grant - with the Renault lineup, and the BMW MINI Countryman Electric upgrading their grant eligibility from the lower tier £1,500 discount. Currently, each of the following cars meet the Government's stringent sustainability requirements:
BMW MINI Countryman Electric
Premium compact SUV with distinctive styling
Suitable for families requiring versatile space
Available through salary sacrifice schemes for additional tax savings
Renault 4 E-Tech
Retro-inspired design with modern electric drivetrain
Practical family transport solution
Part of Renault's expanding EV lineup
Renault 5 E-Tech
Stylish compact electric vehicle
Ideal for urban and suburban driving
Features up to 248 miles of range
Read our full Renault 5 review
Renault Alpine A290
Performance-oriented electric hot hatch
Sporty alternative in the grant-eligible segment
Combines driving excitement with zero emissions
Find the full list of eligible cars here.
These additions join the existing top-tier recipients: Ford Puma Gen-E, Ford E-Tourneo Courier, and two additional models, bringing the total to eight vehicles eligible for the maximum discount.
What Does the £1.5 Billion Investment Include?
The Government's Autumn Budget allocation represents a comprehensive commitment to electric vehicle adoption:
Grant Scheme Enhancement - £1.3 Billion
Increased available funding for the Electric Car Grant
Extension of the scheme through to 2030
Broader eligibility as more manufacturers meet sustainability criteria
Continuation of the two-tier structure (£3,750 and £1,500 bands)
Charging Infrastructure Expansion - £200 Million
Acceleration of public chargepoint rollout nationwide
Building on existing £381 million for over 100,000 new public chargers
Focus on areas outside London, including Yorkshire, Wales, West Midlands, and East of England
Rural chargepoints in England increased by 26% year-on-year
Expensive Car Supplement Relief for EVs
Source: Xiaomi
A significant change announced at the Budget raises the Expensive Car Supplement threshold to £50,000 specifically for electric vehicles. This measure reduces the running costs of EVs priced between £40,000 and £50,000.
Previously, any vehicle with a list price over £40,000 incurred an additional £410 annual road tax charge for five years. By raising this threshold to £50,000 for EVs only, the Government has made premium electric vehicles significantly more affordable to run, saving drivers up to £2,050 over a five-year period.
This change particularly benefits drivers considering higher-specification electric vehicles through salary sacrifice schemes, where the full benefit package now includes:
The upfront Electric Car Grant (up to £3,750)
Tax savings through salary sacrifice (20-50%)
Avoidance of the Expensive Car Supplement for vehicles under £50,000
Low 3% Benefit-in-Kind rate
Additional Support Measures
The Government has also introduced:
£25 million scheme for residents without driveways to install home chargers
Proposals to remove planning permission requirements for cross-pavement charging
Potential savings of up to £250 in application fees for home charging installation
Review of public EV charging costs to identify opportunities for price reductions
10 years' business rates relief for eligible public chargepoints, reducing charging prices
Transport Secretary Heidi Alexander said: "Our Electric Car Grant has already supported over 40,000 drivers to choose electric, and this latest expansion doubles the number of models available for the top discount – putting thousands of pounds back in more families' pockets."
How Can You Maximise Your Savings with Salary Sacrifice?
The real opportunity for UK employees lies in combining the £3,750 Electric Car Grant with The Electric Car Scheme's salary sacrifice programme. This combination delivers exceptional value that traditional purchasing cannot match.
Example: Renault 5 E-Tech Savings Calculation
Traditional Purchase:
List price: £33,000
Less Electric Car Grant: £3,750
Net cost: £29,250
With Salary Sacrifice:
3% Benefit-in-Kind rate for 2025/26
20-50% savings on lease costs compared to personal leasing
Income Tax and National Insurance savings
Maintenance, insurance, and breakdown cover included
Option to include home charger installation
A higher-rate taxpayer could potentially reduce their monthly costs by £200-£300 compared to traditional financing, making premium electric vehicles significantly more accessible. When combined with the upfront grant saving, the total cost of ownership becomes compelling.
Example: Premium EV with Expensive Car Supplement Relief
For vehicles priced between £40,000 and £50,000, the savings are even more substantial:
BMW MINI Countryman Electric (£45,000 example):
Traditional approach: £410 annual Expensive Car Supplement × 5 years = £2,050
With new £50k threshold: £0 Expensive Car Supplement
Combined with salary sacrifice: Additional 20-50% savings on lease costs
Plus Electric Car Grant: £3,750 reduction
Total five-year benefit: Potentially £10,000+ for higher-rate taxpayers
This makes premium electric vehicles significantly more accessible through workplace schemes.
What Impact Has the Grant Had So Far?
Since launching in July 2025, the Electric Car Grant has demonstrated significant impact on UK EV adoption:
Sales Performance
Over 40,000 drivers supported to choose electric vehicles
September and October recorded the highest EV sales on record
One in four new cars sold in the UK is now electric
Interest in eligible vehicles doubled in some cases
Market Growth
Ian Plummer, Chief Commercial Officer at Autotrader, commented: "We can clearly see the impact the Grant is already having on consumer interest, with the number of people viewing grant eligible models on Autotrader increasing by over 100% in some instances."
This surge in interest reflects a broader shift in consumer attitudes towards electric vehicles, particularly as the cost comparison with petrol cars becomes increasingly favourable.
Infrastructure Development
The UK now has nearly 87,000 chargepoints live across the country:
Fastest growth occurring outside London
Yorkshire showing substantial expansion
Wales experiencing significant infrastructure development
West Midlands and East of England seeing accelerated rollout
Rural England chargepoints up 26% overall year-on-year
This expanding network addresses one of the key concerns about EV charging infrastructure, making electric vehicle ownership practical for more drivers.
Which Other Vehicles Qualify for the Grant?
Beyond the eight models eligible for the maximum £3,750 discount, several additional vehicles qualify for the £1,500 Band Two grant:
Peugeot E-308: Compact electric family car
Peugeot E-408: Stylish electric crossover
DS 3: Premium compact electric vehicle
DS No4: Luxury electric crossover
Nissan LEAF: Pioneering mass-market EV, soon to be built in Sunderland
Vauxhall models: Various options across the range
Citroën models: Practical affordable EV options
The Department for Transport expects more models to qualify in coming weeks as manufacturers' applications undergo assessment. The scheme's strict sustainability criteria, including verified science-based targets and embodied carbon thresholds, ensure only genuinely green vehicles receive support.
How Does the Grant Support UK Manufacturing?
The Electric Car Grant also supports domestic manufacturing and jobs. Notably, the Nissan LEAF—one of the qualifying vehicles—will be built at Nissan's Sunderland plant, helping to boost employment and economic growth in the North East.
This aligns with the Government's broader industrial strategy, demonstrating how environmental policy can support both sustainability goals and regional economic development. The total £7.5 billion investment aims to maintain the UK's position as having the largest EV market share of any major European country.
What Are the Long-Term Implications?
For Employees
Workers considering electric vehicles can now access:
Greater choice among grant-eligible models
Long-term certainty with the scheme extended to 2030
Enhanced charging infrastructure for everyday use
Combined savings through grants and company electric car schemes
Expensive Car Supplement relief for EVs under £50,000
For Employers
Companies offering electric car salary sacrifice schemes benefit from:
More attractive employee benefit packages
Support for corporate sustainability goals
Enhanced recruitment and retention tools
Alignment with the UK's net-zero commitments
No net cost to the business
For the Automotive Industry
Manufacturers face clear incentives to:
Meet stringent sustainability criteria
Invest in green manufacturing processes
Develop affordable electric models under £37,000
Maintain UK production where possible
What Should You Do Next?
If you're considering making the switch to electric, now presents an optimal opportunity:
Immediate Actions
Review Eligible Vehicles: Explore the expanded range of models qualifying for the grant, including the new BMW MINI and Renault options
Calculate Total Savings: Use The Electric Car Scheme's calculator to understand combined grant and salary sacrifice benefits
Assess Charging Needs: Determine whether home charging or public charging best suits your circumstances
Consult Your Employer: Discuss whether your company offers The Electric Car Scheme or could introduce it
Long-Term Planning
Consider how electric vehicle ownership fits into your broader financial planning:
Frequently Asked Questions
How much can I save by combining the grant with salary sacrifice?
Combining the £3,750 Electric Car Grant with electric car salary sacrifice can deliver total savings of 20-50% compared to traditional personal leasing. For a higher-rate taxpayer, this could mean saving £8,000-£12,000 over a three-year period on a qualifying vehicle, plus the immediate £3,750 grant reduction.
Which models qualify for the maximum £3,750 grant?
Eight models currently qualify: BMW MINI Countryman, Renault 4 E-Tech, Renault 5 E-Tech, Renault Alpine A290, Ford Puma Gen-E, Ford E-Tourneo Courier, and two additional models. All must meet strict sustainability criteria including verified science-based targets and embodied carbon thresholds.
How does the Expensive Car Supplement change affect EV drivers?
The Government has raised the Expensive Car Supplement threshold from £40,000 to £50,000 specifically for electric vehicles. This means EVs priced between £40,000 and £50,000 no longer incur the additional £410 annual charge for five years, saving drivers up to £2,050. This makes premium electric vehicles more affordable through salary sacrifice schemes.
How long will the Electric Car Grant continue?
The Government has extended the scheme through to 2030, providing long-term certainty for drivers and manufacturers. The additional £1.3 billion funding ensures sustained support for electric vehicle adoption throughout this period.
Can I use the grant with a salary sacrifice scheme?
Yes, the £3,750 grant applies regardless of how you acquire the vehicle. When leasing through The Electric Car Scheme, the grant reduces the vehicle's list price, which then determines your monthly salary sacrifice amount. This compounds your savings significantly.
What charging support is available?
The Government is investing £200 million in expanding public charging infrastructure, plus £25 million specifically for residents without driveways. Nearly 87,000 chargepoints are already live across the UK. You can also include home charger installation in your salary sacrifice arrangement through The Electric Car Scheme. Additionally, 10 years' business rates relief for public chargepoints should help reduce charging costs.
Will more vehicles become eligible?
Yes, the Department for Transport expects additional manufacturers to meet the sustainability criteria in coming weeks. As more models qualify, drivers will have even greater choice when selecting their electric vehicle.
How does this compare to previous grant schemes?
Unlike previous programmes, this scheme emphasises environmental credentials throughout the supply chain. The two-tier structure (£3,750 and £1,500) rewards manufacturers meeting the highest sustainability standards, encouraging industry-wide improvements in green manufacturing.
What are the eligibility requirements for qualifying vehicles?
Vehicles must have a recommended retail price of £37,000 or less, offer a minimum 100-mile range, include a three-year/60,000-mile vehicle warranty, and provide an eight-year/100,000-mile battery warranty. Manufacturers must also commit to verified science-based targets and meet embodied carbon thresholds.
A Pivotal Moment for UK Electric Vehicle Adoption
The expansion of the Electric Car Grant to include premium models from BMW and Renault, combined with £1.5 billion in new Government funding and the raised Expensive Car Supplement threshold, represents a pivotal moment in the UK's transition to electric mobility. With over 40,000 drivers already benefiting and record EV sales in recent months, the momentum behind electric vehicle adoption is undeniable.
For UK employees, the combination of the £3,750 grant, Expensive Car Supplement relief, and salary sacrifice schemes creates unprecedented access to premium electric vehicles with substantial financial benefits. As charging infrastructure expands and more models qualify for support, the practical and economic case for switching to electric continues to strengthen.
The scheme's extension to 2030 provides long-term certainty, allowing drivers and employers to plan confidently for an electric future. Whether you're considering a practical family car, a compact urban vehicle, or a performance-focused option, the expanded grant scheme ensures there's an affordable electric solution for every need.
With the UK Government investing £7.5 billion overall to maintain the country's position as a European EV leader, and schemes like The Electric Car Scheme making electric vehicles accessible through workplace benefits, there has never been a better time to make the switch to electric driving.
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Last updated: 03/12/2025
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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