Huge New Grant Slashes Electric Car Prices by Up to £3,750

Thinking of going electric? There’s never been a better time.

The UK Government has just announced a brand new £650 million Electric Car Grant (ECG) that could save you up to £3,750 on the cost of a brand new electric car. This scheme is set to make EVs more affordable than ever, helping drivers save thousands right at the point of purchase – and even more down the line on fuel and maintenance.

In this article, we’ll break down exactly how the grant works, who qualifies, how much you can save, and why it’s brilliant news for your wallet and the planet.

🚗 What’s the deal with this new electric car grant?

On 15 July 2025, the Department for Transport (DfT) dropped a bit of good news for motorists (not the petrol head kind). Transport Secretary Heidi Alexander unveiled a £650 million fund designed to cut the upfront cost of buying a new electric car. It’s called the Electric Car Grant (ECG).

Here’s the quick take:

• Save up to £3,750 off a new electric car: Discounts apply at the dealership, meaning no faffy paperwork for buyers.

• Only on cars under £37,000: This keeps the scheme focused on affordable EVs for everyday families.

• Starts immediately: Manufacturers can apply from 16 July 2025, with savings reaching showrooms within weeks.

• Runs until at least 2028-29 (or until funds run out).

💸 How much can you actually save?

The grant offers up to £3,750 off the retail price. Exactly how much depends on how sustainably the car is built.

• Band one (up to £3,750): For the greenest cars, made by manufacturers who’ve committed to verified Science-Based Targets (SBTs) and meet strict embodied carbon standards.

• Band two (up to £1,500): For slightly less green, but still sustainably produced models.

Either way, it means thousands shaved straight off your bill when you pick up your new EV, which is good when it comes to lease prices.

🥇 Why this is such a big deal for drivers

One of the biggest worries most people have about switching to electric is the upfront cost. But this new grant is designed to tackle exactly that.

Plus, once you’re behind the wheel, you’ll keep saving:

✅ £1,500+ (on average) a year in running costs: With electricity still far cheaper than petrol or diesel, and fewer moving parts that can go wrong.
✅ Low or zero road tax & congestion fees: EVs are exempt or discounted in many cities.
✅ Deals on home chargers: There are a lot of deals on home chargers, even free with some lease deals.

It all adds up. In fact, two in five used EVs now sell for under £20,000, and there are 34 brand new electric cars under £30,000, even before this latest grant kicks in.

🔌 And what about charging?

The Government has been busy here too. The UK now boasts:

• Over 82,000 public chargepoints – with one added every 30 minutes!

• Extra cash recently unlocked for pavement gully charging, so people without driveways can charge easily at home.

• Major investment in workplace and NHS fleet charging to keep the network growing.

All of this means it’s easier than ever to keep your EV topped up, whether you’re on the motorway, parked at Tesco or outside your front door.

📈 Backing British jobs & cutting emissions

The ECG isn’t just good for drivers’ wallets – it’s designed to support British manufacturers, keep us on track to phase out new petrol and diesel cars by 2030, and make the UK a world leader in electric car adoption.

In fact, the UK had the biggest EV market in Europe last year, with sales up by a fifth on 2023.

Heidi Alexander summed it up perfectly:

“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.”

📝 How does it actually work for buyers?

Here’s the best bit: it’s super simple for consumers.

• No paperwork for you: The grant is applied at the point of sale. The dealership sorts everything directly with the Government.

• Manufacturers apply first: They need to get their cars approved for the grant. Expect to see eligible models popping up at dealers within weeks.

• The scheme runs until at least 2028-29, though funding is first come, first served – so if you’re tempted, don’t wait too long.

A full list of eligible vehicles will appear on GOV.UK soon and update as more models are approved.

🚀 Ready to make the switch?

This new Electric Car Grant makes it easier than ever to ditch the petrol pump. With lower upfront prices, cheaper running costs and more charging options than ever, it could be the perfect time to join the electric revolution.

Whether you’re after a city runabout or something with serious motorway legs, keep an eye on local dealers and manufacturers’ sites over the next few weeks to see which models qualify.

✅ Quick recap:

• Save up to £3,750 off a new EV under £37,000

• Grant applied automatically at the dealership – no paperwork for buyers

• Starts this month, running to at least 2028-29

• Huge boost for your wallet, UK jobs and the planet 🌍

Want to chat through the options or keep up with all the latest grants, offers and electric car guides?

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