Drivers Offered Up to £3,750 Discount to Buy Electric Cars
Drivers in the UK will soon be able to claim discounts of up to £3,750 on select new electric vehicles as part of a new government-backed initiative aimed at accelerating the shift away from petrol and diesel.
The Department for Transport (DfT) confirmed that a new £650 million grant scheme will reduce the upfront cost of eligible electric cars priced at £37,000 or less. The biggest discounts will go to the most environmentally friendly models, with incentives ranging from £1,500 to £3,750.
Carmakers can begin applying for the grants starting this week, and the first discounted vehicles are expected to reach dealerships “within weeks”, according to the RAC.
The scheme arrives as the government works toward its 2030 target to end sales of new petrol and diesel vehicles. Currently, the UK has around 1.3 million electric vehicles on the road but only about 82,000 public charging points – well short of the government’s goal of reaching 300,000 by the end of the decade.
Transport Secretary Heidi Alexander said the new grants will help lower the financial barrier for drivers while supporting British industry: “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.”
Alexander also pledged £63 million toward expanding the public charging network, amid widespread concerns that charging infrastructure has not kept pace with EV adoption.
Steve Catlin, managing director at Vauxhall, welcomed the support but stressed that boosting charging availability and consumer demand must remain a priority. “Forty percent of UK households don’t have driveways, so home charging isn’t an option. That’s a major deterrent for would-be EV buyers,” he said.
Under the current Zero Emission Vehicle mandate, 28% of new car sales this year should be electric. The market is currently lagging behind that goal, with EVs accounting for around 21.6% of sales.
The reintroduction of consumer-focused EV grants marks a U-turn from the government’s decision to end a similar scheme in 2022. Initially launched in 2011, the original programme offered buyers up to £5,000 toward a plug-in vehicle. The figure was reduced over time and eventually scrapped, with the DfT citing a need to refocus funding on charging infrastructure and electric commercial vehicles.
The latest initiative has drawn mixed reactions. Shadow Transport Secretary Gareth Bacon criticised the policy, accusing the government of rushing consumers into costly decisions: “Labour are forcing families into more expensive electric vehicles before the country is ready.”
Others, however, see the move as necessary. Paul Cole, a London resident who has driven an EV for two years, said the switch has been worth it: “We haven’t regretted getting it for a moment. With a charging point at home and solar panels, it just made sense.”
Still, for some, charging access remains a major barrier. Carolyn Hammond, from rural North Devon, said the cost of upgrading her home’s electricity supply made an EV unaffordable. “We were quoted £16,500 plus VAT by National Grid. It’s just not feasible,” she said.
The new grant will be available for three years and applies only to vehicles purchased through registered dealerships. Additional tax breaks remain in place for drivers accessing electric vehicles through employer car schemes.
