Electric Car Grant 2025

• The grant provides up to £3,750 off the price of a qualifying new EV.
• The discount is applied directly at the point of purchase, so buyers do not need to apply separately.
• Used EVs are not covered by this scheme, it applies only to new, and certain eligible models.

As part of the Autumn Budget in November 2025, the government announced that the scheme would be extended until 2030.

This gives buyers several years to take advantage of the scheme, though availability will depend on both vehicle eligibility and overall demand.

The government has set ambitious targets for the UK's transition to electric transport. By the end of the scheme, it is hoped that at least 52% of new cars sold in the UK will be fully electric. Grants are one of several measures being used to support this transition, alongside charging infrastructure investment and broader sustainability goals.

You don't need to apply for the EV grant yourself. The manufacturer or dealership will apply for funding directly from the government, and the discounted price will be available at the point of sale.

Depending on the emissions generated, cars will fall into two bands. The most sustainably produced cars will be in 'band one' and will receive the full £3,750 discount. Cars which meet baseline environmental criteria will be in 'band two' and will receive up to £1,500 off. Vehicles priced under £37,000 that meet Science-Based Targets (SBT) for cutting emissions will qualify for the government grant. If a car's basic model is below £37,000, any pricier trim levels up to £42,000 may be eligible for the grant. No cars that exceed £42,000 will be eligible, regardless of the price and emissions of its most basic model.

Many manufacturers have responded by providing their own discounts and incentives, separate to the official government Electric Car Grant. You can view the full list of EV discounts here.

There are still some grants available to help make electric cars more accessible and easier to own. These include grants and schemes to help with installing charging points which you can find more information on above.

Businesses can enjoy discounts in the form of a lower Benefit-in-Kind (BIK) tax rate of 2% with an electric car. Other exclusive discounts may be available on electric cars for 'blue light' workers such as those in the NHS, the military, or the police.

The government states that new electric cars will qualify for a 100% first-year allowance. This means businesses can deduct the full cost from their profits before tax during the first year. For more information, visit the government website

This depends on the specific grant. For instance, the Electric Vehicle Homecharge Scheme (EVHS) is only open to flat owners or renters who have off-street parking. You can check your eligibility for an electric car grant on the government's website, where you'll find the full criteria.

Yes, you can. At Vertu, we're an Electric Vehicle Approved (EVA) retailer, meaning we're well-placed to help you lease an EV for your business or expand your fleet. 

Get in touch with us today to discuss your needs, and our expert team will be happy to help.