Electric car grant update
Learn what the announcement could mean for you
On 15 July 2025 the Department for Transport (DfT) announced a £650 million scheme to support the transition to zero emission motoring.
The grant, applied to eligible cars, will vary based on Government-defined sustainability criteria. All eligible cars must have an RRP below £37,000, and funding will be allocated on a first-come, first-served basis.
The most environmentally friendly cars, in band one, will receive up to £3,750 discount. Band two cars will receive up to £1,500 discount.
Car manufacturers, dealerships, and the government will handle all administration. This means customers won't need to fill in any extra paperwork.
The DfT plans to update its guidance on the scheme on 15 July 2025, after it issues a written statement to Parliament. The Office for Zero Emission Vehicles (OZEV) plans to publish a list of eligible cars on its website on 16 July 2025.
Sources
Further details and guidance can be found on the GOV.UK website.