New £3,750 electric car grant to slash costs for thousands of UK drivers

The ECG supports the UK’s wider Plan for Change, aimed at cutting costs for working families while backing green jobs and sustainable manufacturing. Only cars that meet high environmental production standards will qualify, giving UK and global manufacturers incentive to invest in cleaner, better cars. We aren't 100% sure what those standards are just yet but we do know that some manufacturers do run production sites on renewable energy, BMW's Leipzig factory for example, and many do use recycled materials in their electric cars, and recycle the batteries after the car's lifespan ends.

Transport Secretary Heidi Alexander summed it up:

"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."

Dan Caesar, CEO of Fully Charged, added:

"While most EVs are cheaper to run than petrol and diesel cars, many are still more expensive to buy or lease. This well-targeted grant is a positive step to support lower income households, rural drivers, and those that rely on their cars."

At DriveElectric, we agree. This is a practical step that addresses the cost barrier many drivers still face, and has the potential to open up EV access to more people across the UK.

This announcement comes as the UK hits over 82,000 public chargepoints nationwide — with one being installed every 30 minutes. And with more than 380,000 new EVs registered last year, the UK is now Europe’s largest electric car market.

With more new models under £30,000 and a growing used EV market too, the shift to electric is becoming not just greener, but genuinely more affordable.

While the return of EV grants is being welcomed in many quarters, some long-time EV advocates have voiced frustration, warning that the scheme may risk repeating past mistakes.

• Critics point out that manufacturer “margin creep” has previously diluted the benefits of such grants, with discounts quietly shrinking as incentives arrive.
• There are also concerns over complex environmental eligibility rules creating administrative burdens and uncertainty for buyers.
• With a limited number of vehicles likely to benefit, some argue the grant risks creating a short-term market distortion, rather than long-term confidence.
• Many in the industry suggest the funding could have been better targeted — such as boosting home charger grants, which support both drivers and local installation jobs, or helping lower-income drivers via the used EV market.
• Removing VAT on eligible used EVs, for example, is seen by some as a simpler and more equitable lever to drive adoption.

While the goal of making EVs more affordable is widely shared, some feel this policy could have gone further in addressing the other very real barriers that still stand in the way of mass electric car and van adoption.

Our team is here to help you find the right car, at the right price, and make the switch with confidence. Get in touch today.