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If you're thinking about a new electric car, there's a decent chance the government will knock some money off it. The Electric Car Grant is worth up to £3,750 on the right model, and you don't have to fill in a single form to get it. The catch is that not every EV qualifies, and the amount you get depends on where and how the car was built. Here's how it works, and whether it's actually the best way to save.
The short answer
You can get up to £3,750 or up to £1,500 off a brand-new electric car priced at £37,000 or less. The dealer takes it off the price for you, and the scheme is due to run until March 2030.
It is. The grant started in July 2025 with a smaller budget and an end date of 2029. It has since been extended, and the government's own listing now describes it as a £2 billion scheme running until 31 March 2030.
That said, the government reserves the right to change the amounts or the rules without warning. So if you've got your eye on a particular car, don't assume the discount will still be there in six months.
There are two levels. Cars in Band 1 get up to £3,750 off, and cars in Band 2 get up to £1,500. If a car isn't in either band, there's no discount at all.
What surprises a lot of people is how the bands are decided. It has nothing to do with how efficient the car is on the road. Instead, the government looks at the carbon produced when the car was made, and the battery counts for most of that score. A car built in a country that relies on cleaner electricity will usually do better than one built somewhere that burns a lot of coal. That's why two similarly priced EVs can end up with very different discounts.
The main rule is price. The car has to be brand new, fully electric and have a recommended retail price of £37,000 or less, including VAT and delivery. Used cars and plug-in hybrids are not included.
There's a bit of flexibility on higher trims. If the entry-level version of a model qualifies, some of the better-equipped versions can still get the grant, up to a ceiling of £42,000. Don't take that for granted, though. Adding a big option pack can push a car over the line.
Beyond price, the car needs an official range of at least 100 miles, and the manufacturer has to offer a minimum warranty: three years or 60,000 miles on the car, and eight years or 100,000 miles on the battery. That last point is quite reassuring if you're worried about battery life.
By October 2026, more than 60 models had been approved, with around 20 of them in Band 1. New ones are added regularly, so the easiest thing to do is ask the dealer directly whether the exact version you want qualifies, and for how much.
You don't need to do anything. The dealer or manufacturer takes the grant off the price and claims it back from the government themselves. Just check that the dealership is taking part in the scheme, and make sure the discount is shown on your order or invoice before you sign anything.
£3,750 is a nice saving, but it's worth putting it in context. New cars lose value fast, and a drop of 15% or more in the first year is not unusual. On a £35,000 car, that could easily be more than the grant itself. So a year-old model might work out cheaper overall, even without any government help.
If you go down the used route, do your homework first. Run a car history check before you hand over any money. It'll tell you if the car has been written off, reported stolen or still has finance owing on it.
If you were planning to buy a new EV anyway, the grant is free money and well worth having. With the scheme now running until 2030, there's no need to rush, but do check the exact version and its band before you order. And if keeping costs down is your main aim, it's worth comparing the price against nearly new cars too. You might be surprised.