Buying a new electric car in Britain currently comes with a government discount applied before you have even signed anything. The Electric Car Grant takes up to £3,750 off the price — and more than 160,000 people have used it since it launched.
Quick answer: The Electric Car Grant gives £3,750 (Band 1) or £1,500 (Band 2) off a new EV with a starting RRP under £37,000. It is applied automatically at the dealer — there is nothing for you to apply for. The band depends on the manufacturer's verified sustainability targets, not on you. The scheme runs to 2028-29.
How much you get: the two bands
The grant is tiered, and the tier is decided by the carmaker rather than the buyer:
| Band | Discount | Who qualifies |
|---|---|---|
| Band 1 | £3,750 | EVs from manufacturers with verified Science-Based Targets — formal, audited commitments to cut greenhouse gas emissions across production |
| Band 2 | £1,500 | Other qualifying EVs from manufacturers meeting basic sustainability criteria but without SBT certification |
This is the part buyers most often get wrong. You cannot influence your band by choosing a different trim or dealer — it is a property of the manufacturer. Two similarly priced EVs from different brands can carry a £2,250 difference in grant purely on that basis, so it is worth checking the band before you shortlist.
The price cap
To qualify at all, the car must have a starting RRP under £37,000.
There is a useful piece of flexibility here: a higher-spec version of an eligible model can cost up to £42,000 and still qualify, provided the battery is the same size as the base model. So adding options to a qualifying car does not automatically cost you the grant — but stepping up to a bigger-battery variant usually will.
The technical eligibility rules
Beyond price, the vehicle must be:
- An M1 passenger car (a standard car, not a van or quadricycle)
- Emitting 0g CO2/km at the tailpipe — so pure electric only, no hybrids
- Capable of a minimum 100-mile WLTP range
- Covered by an 8-year or 100,000-mile battery warranty
- Covered by a 3-year or 60,000-mile general warranty
Plug-in hybrids do not qualify under any band.
You don't apply — the dealer does
The grant is run by the Office for Zero Emission Vehicles and applied as an automatic discount at the point of sale. There is no form, no claim and no waiting for a refund. The price you are quoted on an eligible car should already have it deducted.
Two practical consequences:
- Check it has actually been applied. Ask the dealer to show the grant as a separate line on the order. If a quote looks high against a rival, an unapplied grant is a common reason.
- Confirm the band in writing. The difference between £3,750 and £1,500 is large enough to change which car is cheapest overall.
How the scheme is funded
| Launched | 16 July 2025 |
| Initial funding | £650 million |
| Extended by | £1.3 billion (November 2025 Autumn Budget) |
| Runs to | 2028-29 financial year |
| Take-up so far | 160,000+ switchers |
The extension matters if you are not buying immediately: the scheme was topped up rather than wound down, so the pressure to rush a purchase this month is lower than it was.
What it's worth against running costs
A grant is a one-off; fuel is forever. It is worth seeing the two together.
As of 28 August 2026, UK forecourts averaged 160.9p a litre for petrol and 180.5p for diesel (live figures). For a driver covering 10,000 miles a year:
| Annual fuel/energy cost | |
|---|---|
| Petrol at 40mpg, 160.9p/litre | ~£1,830 |
| Diesel at 50mpg, 180.5p/litre | ~£1,640 |
| EV, home charging on an off-peak tariff | Typically a fraction of the above |
| EV, public rapid charging only | Can exceed the petrol figure |
That last row is the catch worth understanding before you buy. An EV charged at home overnight on a dedicated tariff is dramatically cheaper to run. An EV charged exclusively on public rapid units can cost more per mile than petrol. Our public EV charging costs and cost to charge an EV at home guides break both down, and the journey cost calculator will price a specific route either way.
So the honest framing is: the grant accelerates a payback that home charging was already delivering. If you cannot charge at home, run the numbers carefully before assuming the grant settles it.
What else is changing
The grant does not sit in isolation. Three other changes affect the sums:
- Fuel duty rises from 1 September 2026 — the first increase since 2011 — making petrol and diesel gradually dearer.
- A pay-per-mile EV tax (eVED) is planned from April 2028 at 3p a mile.
- The ZEV mandate is under review, with new petrol and diesel sales still due to end in 2030.
The bottom line
Up to £3,750 off a new EV under £37,000, applied automatically, funded through 2028-29. Check the band before you shortlist, check it appears on your order, and check you can charge at home — because that, more than the grant, decides whether an EV actually saves you money.
Comparing what you currently spend at the pump is a sensible first step: see today's live prices or find your nearest cheapest forecourt.
Grant terms reflect Office for Zero Emission Vehicles guidance as of 28 August 2026. Live pump averages from the UK Government Fuel Finder scheme via Fuel Near You.
Frequently Asked Questions
How much is the Electric Car Grant in 2026?
Up to £3,750. The grant has two bands: Band 1 gives £3,750 off and applies to EVs from manufacturers with verified Science-Based Targets for cutting emissions; Band 2 gives £1,500 for other qualifying EVs. The band is set by the manufacturer's sustainability credentials, not by the buyer.
Do I have to apply for the Electric Car Grant?
No. The grant is administered by the Office for Zero Emission Vehicles and applied automatically as a discount at the point of sale. The dealer handles the paperwork and the price you are quoted should already reflect it. There is no form for the buyer to complete.
What is the price cap for the Electric Car Grant?
The car must have a starting recommended retail price under £37,000. Higher-spec versions of an eligible model can cost up to £42,000 and still qualify, provided the battery is the same size as the base model.
Which cars qualify for the Electric Car Grant?
The vehicle must be an M1 passenger car emitting 0g CO2/km at the tailpipe, with a minimum 100-mile WLTP range, an 8-year or 100,000-mile battery warranty and a 3-year or 60,000-mile general warranty, and a starting RRP under £37,000. Whether it lands in the £3,750 or £1,500 band depends on the manufacturer's verified sustainability targets.
How long does the Electric Car Grant last?
The scheme launched on 16 July 2025 with £650 million of funding and runs to the 2028-29 financial year. The November 2025 Autumn Budget added a further £1.3 billion to extend support through 2026 and 2027. More than 160,000 people have used it to switch so far.
Is the Electric Car Grant worth it compared with running a petrol car?
The grant is a one-off saving on purchase, while fuel is an ongoing cost. With petrol averaging 160.9p a litre on 28 August 2026, a driver covering 10,000 miles a year at 40mpg spends roughly £1,830 a year on fuel. Home charging on an off-peak tariff typically costs a fraction of that, so the grant accelerates a payback that running costs were already driving.