Nowadays, many individuals and businesses are considering the switch to all-electric power when it comes to driving. In years gone by, there has been somewhat of a hurdle to do so, with charging, costs, and range-anxiety at the forefront of many minds. However, more recently, technology has advanced significantly and EVs are some of the most forward-thinking and convenient vehicles available.
To encourage and accelerate the adoption of electric cars even more, the UK Government has announced significant changes to its electric car grants and schemes, with the aim of making EV ownership more accessible and appealing.
Here's everything you need to know regarding the recent changes to electric car grants and how it may impact you and your business:
- What is the electric car grant?
- How does the electric car grant work?
- What other grants are available?
- How much can I save?
- Is my business eligible for grants?
- Frequently asked questions
What is the electric car grant?
The electric car grant is an incentive introduced by the UK government that makes EV ownership more affordable for owners. With the aim of encouraging further adoption of all-electric vehicles, the latest iteration of the electric car grant, which was introduced in 2025 and runs to the 2028/2029 financial year, can see owners save up to £3,750 when purchasing or leasing a new electric car.
Over the years, there has been a number of iterations or variants of electric car grants to support both the purchase of EVs, as well as the charging infrastructure they rely on. Some of these schemes have now been removed or replaced, while others are still available, allowing you to make significant savings when making the switch to electric or replacing your existing EV.
How does the electric car grant work?
The primary electric car grant is designed to make the purchase of EVs themselves more affordable. £650m has been set aside by the Government, and it's predicted that over 170,00 new EVs will benefit from the scheme throughout its duration.
The scheme works by reviewing certain aspects of available vehicles such as starting prices, 'Science-Based Targets' and other criteria in order to determine if they're eligible or not. Only brands that display a true commitment to sustainability will be approved; most of the top manufacturers are already doing this, so will have no issues.
Once a car is eligible, it will then fall into one of two groups. The cleanest of models will receive the full £3,750 discount, while those that are eligible but don't quite meet all of the requirements will be eligible for a £1,500 discount.
As a customer, there's very little that you'll have to do in order to benefit from the grant. Your retailer, fleet manager or other point of contact will automatically apply the discount to your overall package when completing the purchase process, ensuring you get the greatest value for your new EV.
What other grants are available?
In addition to the primary electric car grant, there are a number of supplementary incentives available to support other areas of EV ownership for both individuals and businesses.
EV infrastructure grant for staff and fleets
Designed with small and medium-sized businesses in mind, the EV infrastructure grant for staff and fleets supports the installation of EV chargepoints and their additional infrastructure. The grant will give your business money off the cost of building and installation work that's required to install multiple chargepoints.
The grant covers 75 percent of the cost of the work, with a maximum saving of £15,000. You may be able to benefit from up to five grants, across five different locations too, which is ideal for businesses with multiple bases.
Eligibility criteria may differ depending on your specific circumstances, but generally speaking, as long as you're registered at Companies House or VAT registered with HMRC and have fewer than 249 employees, then your business should be eligible.
Electric vehicle chargepoint grant for renters and flat owners
If you currently rent a property or own a flat, then there is an available grant to support with the installation of an electric car chargepoint socket at your property. The grant sees you benefit from a 75 percent saving on the cost to buy and install the socket, up to a maximum of £350.
If you're thinking of applying for the grant, you'll need to ensure you either:
- Own and live in a flat.
- Rent any residential property (including those under a shared ownership scheme).
You must also ensure you own an eligible vehicle and the property must have its own private, off-street parking.
Electric vehicle chargepoint and infrastructure grants for landlords
If you own a property, whether residential or commercial, it's likely you're also eligible for financial support for the installation of chargepoints and their infrastructure, too. There are two types of grants available:
Electric vehicle chargepoint grant
Designed to give you money off the cost of installation for an electric vehicle chargepoint socket. This grant sees you benefit from 75 percent discount to buy and install a socket, up to a maximum of £350 per socket. If you have multiple properties or want to install multiple chargepoints at one property, you're able to receive up to 200 grants per year for residential properties, plus a further 100 for commercial properties.
Electric vehicle infrastructure grant
This grant is designed to give you money off the cost of wider building and installation works associated with the installation of multiple charging sockets. This includes elements such as wiring and posts, and sees you benefit from 75 percent discount, up to a maximum of £30,000.
Unfortunately, you're unable to apply for the infrastructure grant if you're a commercial landlord - the infrastructure grant for staff and fleets may offer better-suited support, as mentioned above.
How much can I save?
The exact amount you can save will vary depending on your exact circumstances and which grants you're looking to benefit from. Plenty of manufacturers aren't waiting around for their vehicles to be officially approved either, and have already launched their own grant incentives that are in-line with, or sometimes even better than, the official Government grant scheme.
If you already have a chargepoint or are not interested in having one installed, and simply want to purchase or lease an EV, then you'll benefit from the primary electric car grant when completing your agreement. Some examples include*:
- Citroën ë-C3: £1,500 off as part of the electric car grant.
- Hyundai INSTER: £3,750 off as part of the electric car grant.
- MGS5 EV: £1,500 off as part of the electric car grant.
*Offers correct at the time of writing and are subject to change.
Those that may seek additional support for infrastructure and chargepoint installation costs may see their savings grow further, too. By combining both the electric car grant with additional infrastructure grants, EV ownership will become much more affordable for many.
If you are fleet manager or business that's looking to benefit from the electric car grants, then your exact savings may differ slightly. Lease vehicles are still eligible for grant discounts, but the exact manner in which they are applied can differ from provider to provider. We'd recommend contacting your service provider to gain further information, or contacting new, potential service providers to see if their options are better-suited to your business goals.
Is my business eligible for grants?
Whether your business, employees and/or fleet is eligible for any of these incentives or grants will depend on a number of factors. The good news is that there are numerous grants to benefit from, each designed to suit different scenarios and use cases.
The electric car grant is available for a number of leasing options too, allowing you to make these savings in addition to the savings you'd already be making through schemes such as a salary sacrifice car scheme.
Your business may also be eligible for financial support for infrastructure, allowing them to build charging ports at your workplace.
Frequently asked questions
Many individuals and businesses may be eligible for an EV charger grant in addition to the primary electric car grant. EV charger grants are designed to help with the installation of charging infrastructure and there are different types of grants available depending on what type of property you'd be installing the infrastructure on. Whether you're actually eligible or not will rely greatly on your exact circumstances; exact eligibility requirements are available on the Government website.
Yes, owners of EVs have been required to pay road tax since 2025. Previously, EVs were exempt from road tax charges, but the rules changed under updated legislation. The exact amount you'll have to pay will depend on your car's age - cars registered after April 1st 2025 will be subject to a £10 first year charge, and then the standard £195 per year payment from the second year onwards.
Yes, electric cars are cheaper to run and that is one of the biggest reasons many are choosing to make the switch. When charged at home, owners can see significant savings compared to a traditional ICE model, and servicing/maintenance can also be cheaper too. Pair this with the available grants, and EV ownership is more affordable than ever.
The costs of installing an electric chargepoint can differ depending on the amount of work required, but you can generally expect to pay between £500 and £1,000 to have a chargeport fitted at home or at your workplace. There are EV chargepoint and infrastructure grants available though to support with the installation costs financially that are well worth benefitting from.
In most scenarios you are required to pay for the electricity you use to charge your vehicle. You may come across some free car charging locations while out and about, although these are becoming less common. Some manufacturers/lease providers may also run promotional activities that offer subsidised charging for a period of your lease, too.
When charging your car from home, you are subject to a different tariff to your house's normal electricity too, which helps to reduce charging costs significantly.
Discover your next EV with Pendragon Vehicle Management
With the rollout of the latest electric car grant, there has never been a better time to make the switch to all-electric power. With savings of up to £3,750 to be had across some of the latest and greatest models, as well as additional support for chargepoint installation and infrastructure, you and your business could make significant savings when buying or leasing new electric vehicles.
If you're interested in learning more about the electric car grant, our friendly associates will be more than happy to lend their expert advice. Please get in touch today to find out more.
