Home / Business and Economy / UK Revives Electric Car Grant, Slashing Prices by Over £1,500
UK Revives Electric Car Grant, Slashing Prices by Over £1,500
16 Nov, 2025
Summary
- UK government relaunches £650 million Electric Car Grant
- Discounts of up to £3,750 available on eligible electric vehicles
- Scheme aims to accelerate EV adoption by improving affordability
In a move to boost electric vehicle (EV) adoption, the UK government has relaunched the £650 million Electric Car Grant (ECG) scheme. The initiative, which was first launched in July 2025, provides financial assistance to car buyers by reducing the purchase price of eligible new electric vehicles.
Under the ECG, there are two bands of discounts available. Band One vehicles receive the maximum grant of £3,750, while most models fall under Band Two, which offers a £1,500 discount. The scheme applies to automobiles with a specific level of CO2 manufacturing footprint, as well as meeting range, sustainability, and warranty requirements.
The ECG is part of the government's efforts to accelerate the adoption of electric vehicles by improving their affordability. When combined with salary sacrifice schemes that offer 20-50% savings, eligible drivers could save over £7,500 annually on new EVs.
