Asger Risom
The British government is bringing back financial support for electric car buyers. Under a new scheme launching July 16, drivers can save up to £3,750 on eligible EVs, aiming to boost adoption ahead of key climate targets.
The British government is bringing back financial support for electric car buyers. Under a new scheme launching July 16, drivers can save up to £3,750 on eligible EVs, aiming to boost adoption ahead of key climate targets.
A Return to Incentives
The scheme marks a revival of EV subsidies in the UK, three years after the original Plug-in Car Grant was scrapped. The new programme offers support for electric cars priced under £37,000.
Up to £3,750 Off—But With a Twist
Buyers can receive either £3,750 or £1,500 off depending on the car’s sustainability rating. The highest support is reserved for EVs with the lowest manufacturing emissions.
Two-Tier Emissions-Based System
Cars will be sorted into “band one” or “band two” based on the total CO₂ output during vehicle and battery production. The government has yet to release the full criteria.
No Bonus for UK-Made Cars
Officials confirmed that cars will be evaluated purely on emissions—not on where they are built. British-made models will not receive preferential treatment.
Industry Welcomes the Move
Automotive leaders, including the SMMT, praised the grant’s return. CEO Mike Hawes called it “a clear signal” of the government’s intent to speed up EV adoption.
Crucial for Hitting 2025 Targets
The UK must hit a 28% EV sales rate this year to comply with its ZEV mandate. So far, the figure is just under 25%, putting extra pressure on the market and manufacturers.
Fast Start for Carmakers
Though formal approval is pending, manufacturers can start applying the discounts immediately. The scheme will run through 2028–29 unless funds are exhausted earlier.
