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Government launches new Electric Car Grant with up to £3,750 discount 

New grant lets manufacturers offer reduced prices on electric cars priced under £37,000. 



New government scheme to promote the switch to electric cars 

The UK Government has announced a new grant that could reduce the costs of electric cars by up to £3,750 to support the uptake of zero-emission cars. 

The £650 million programme aims to lower the barrier for new electric vehicle (EV) drivers, while also encouraging sustainable vehicle production. 

Car manufacturers can apply for the grant, which will allow them to offer discounted prices for new electric vehicles costing £37,000 or less.  

Cars with the most sustainable production processes will qualify for the most support – meaning the biggest discounts.  

Applications for the Electric Car Grant open from 16 July 2025 and will run until the 2028/29 fiscal year. 

Transport Secretary, Heidi Alexander, said: “This EV grant will not only allow people to keep more of their hard-earned money – it’ll help our automotive sector seize one of the biggest opportunities of the 21st century.   

“And with over 82,000 public chargepoints now available across the UK, we’ve built the infrastructure families need to make the switch with confidence.” 

Boosting EV charging infrastructure

Alongside the grant, the government is investing £25 million to improve at-home car charging, particularly for households without private driveways.

Local authorities will be supported in implementing ‘cross pavement’ charging solutions –technology enabling electric vehicle charging at home, with charging costs as low as 2 p per mile.

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