The government has announced a £650 million grant scheme which is set to be worth up to £3,750 per car, helping make owning an electric car a reality for thousands of households.
The Electric Car Grant, or ECG, will support UK and other manufacturers with eligibility dependent on the highest manufacturing sustainability standards. It will provide discounts of up to £3,750 at the point of sale for new eligible electric cars that are priced at, or under, £37,000.
Drivers will begin benefitting as soon as manufacturers successfully apply for their zero emission cars to be part of the grant scheme – which they’ve been able to do so since 16 July 2025. Funding will be on offer until the 2028-2029 financial year.
Simon Williams, Head of Policy at the RAC, said: “Within weeks, discounted cars should start appearing at dealerships across the country. And, as the biggest savings will be given to cars with the strongest ‘green’ manufacturing credentials, drivers will be picking models that are not only better for their wallets, but better for the planet too.”
