From 16 July 2025, the UK government has reintroduced financial support for electric vehicle buyers, this time in the form of a grant offering £1,500 or £3,750 off new electric vehicles priced under £37,000. The move is part of a larger £650 million plan aimed at accelerating EV adoption and making cleaner transport more affordable for more people.
The scheme will run until 2029, offering much-needed relief to buyers at a time when the cost of switching to electric remains a key barrier. The idea is simple: reduce the upfront price gap between petrol and electric models and give drivers a clear incentive to make the switch.
Helping Close the Affordability Gap
Electric vehicles made up 21.6% of all new car sales in the first half of 2025, just short of the government’s target of 28%. And with the planned ban on new petrol and diesel cars delayed to 2030, this new grant is seen as a way to reignite momentum and make EVs more accessible.
Under the scheme, the discount will be automatically applied at the point of purchase, with manufacturers and dealers managing the process.
To qualify, vehicles must come from brands with verified Science-Based Targets (SBTs) for cutting emissions and meet strict sustainability standards. The most environmentally friendly models will receive the full £3,750 discount, while others that meet minimum criteria can still qualify for a £1,500 grant. Around 50 new EV models are expected to be eligible.
Which Vehicles Qualify?
Not every EV will be eligible. Vehicles must meet the following requirements:
• Zero tailpipe CO₂ emissions
• Minimum 100-mile WLTP electric range
• Battery warranty of at least 8 years or 100,000 miles (with 70% capacity retention)
• 3-year general warranty
• Approved under UN Regulation No. 100
This makes the scheme more targeted, aiming to support genuinely practical and sustainable electric vehicles, rather than just any low-cost model.
Industry Response: Support Mixed with Concern
While the grant has been welcomed by many as a step in the right direction, some in the automotive industry have raised concerns about how it has been rolled out.
Several manufacturers and trade groups have voiced frustration at the lack of consultation, pointing to confusion over which models will qualify and how the funding will be distributed. Others worry that only a limited number of vehicles will actually meet the criteria, which could reduce the real-world impact of the scheme.
There has also been discussion about how best to maximise the impact of EV funding. Some argue that greater support for home charging infrastructure or the used EV market could make electric vehicles more accessible, especially for lower-income households who are less likely to buy new.
Transport Secretary Confirms £1,500 Discount on Select Citroën EVs
Transport Secretary Heidi Alexander has confirmed that buyers can now enjoy a £1,500 discount on four Citroën electric models: the ë-C3, ë-C4, ë-C5, and the ë-Berlingo.
She also announced that more eligible electric vehicles are expected to be confirmed in the coming weeks, as the scheme continues to expand.
A Step Forward
While not perfect, this new grant signals a renewed commitment from the government to support EV growth and ease the cost of transition. It adds momentum to a market that has seen incentives slowly stripped away in recent years, from road tax exemptions to clean air zone perks.
If manufacturers rise to the challenge and bring more sub-£37,000 electric cars to market, this grant could go a long way in boosting both confidence and uptake.
But, as ever with government schemes, the details will matter. Drivers, dealers and automakers alike will be watching closely to see how it plays out.
