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The Electric Car Grant is back in the UK, making now the perfect time to go electric. In this article, we’ll explain what the new Electric Car Grant is, which cars qualify, and how much money you could save.
What is the Electric Car Grant?
The Electric Car Grant is a new £650 million government scheme designed to make electric vehicles (EVs) more affordable for UK drivers. It replaces the old Plug-in Car Grant and forms part of the UK’s wider Plan for Change, which aims to cut emissions, support British jobs, and help households with the cost of living.
From 16 July 2025, manufacturers can apply to have their EVs approved for the scheme, and drivers will start seeing eligible models discounted at dealerships and through lease deals.
How much can you save?
The Electric Car Grant offers two levels of discount, depending on how environmentally friendly the car is:
- £3,750 for vehicles that meet the highest sustainability standards (including green manufacturing processes)
- £1,500 for vehicles that still meet core criteria but don’t qualify for the top tier
To qualify:
- The car must be fully electric (zero emission)
- It must cost £37,000 or less
- It must meet high sustainability and safety standards
The discount is automatically applied at the point of sale, so if you lease a qualifying EV through Jurni, you won’t need to do anything – the savings are built straight into your monthly payments.
Why has the government reintroduced the grant?
The upfront cost of EVs has been one of the biggest barriers to adoption, particularly for working families. By reintroducing the grant, the government aims to:
- Make EVs more accessible
- Help drivers save up to £1,500 a year on fuel and running costs
- Encourage the sale of vehicles from manufacturers with strong sustainability credentials
- Keep momentum ahead of the 2035 petrol and diesel ban
When does the grant start?
Manufacturers can apply to the scheme from 16 July 2025, and eligible EVs are expected to be announced on the 11 August 2025.
Drivers should begin seeing discounted electric cars shortly after that date, both for outright purchase and through lease agreements.
Funding for the scheme is available until the 2028–2029 financial year, with a total of £650 million allocated.
Which EVs could be eligible?
The full list of qualifying models will be confirmed next month, once the government has assessed manufacturer applications. However, several popular EVs are expected to fall within the £37,000 cap, including:
Some manufacturers are already acting in anticipation of the grant. MG, Kia, GWM, and Leapmotor have introduced their own pre-grant discounts on selected models, helping drivers save before the official list is published.
It's also worth noting that eligibility for the full £3,750 discount depends on each carmaker’s environmental credentials. To unlock the higher grant, manufacturers must commit to verified science-based targets (SBTs) and meet strict embodied carbon limits.
As a result, some models – particularly those made in China – might only qualify for the lower £1,500 grant, or may not be eligible at all.
What about leasing?
Leasing is one of the best ways to benefit from the EV grant. Because the discount is applied to the car’s on-the-road price, it directly lowers the monthly cost of leasing, helping you drive a brand-new electric car for less, with no large upfront payment.
At Jurni, we’ll ensure any grant savings are factored into your quote from the start, so you get the best possible deal with zero hassle.
Better infrastructure, lower costs
The reintroduction of the grant comes alongside major investment in the UK’s EV infrastructure, including:
- Over 82,000 public chargepoints available nationwide
- A new charger installed every 30 minutes
- £63 million recently pledged for at-home and on-street charging
- Preferential tax rates for electric company cars
This all means that running an EV is now cheaper and easier than ever, even for those without a driveway.
Looking for a new car?
The return of the Electric Car Grant is a big win for UK drivers. With lower EV prices, reduced running costs, and expanding charging infrastructure, it’s never been easier – or more affordable – to go electric.
Whether you’re making the switch for the first time or upgrading to a newer model, now’s the perfect time to explore your options.
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