Government Launches New Electric Car Grant to Drive EV Adoption

The UK Government has announced a major new incentive to make electric vehicle (EV) ownership more affordable, with £650 million of funding being made available from 16 July 2025.

Known as the Electric Car Grant, the scheme aims to tackle one of the biggest barriers to EV ownership – the higher up-front cost compared to petrol or diesel models – by cutting up to £3,750 off the list price of eligible new cars.

Two Levels of Support

The grant will be split into two tiers:

• £3,750 for EVs that meet the highest sustainability standards.

• £1,500 for cars that meet some, but not all, of the environmental criteria.

To qualify, cars must be brand-new, battery-only EVs with a list price of £37,000 or less. Vehicles that fall short of the government’s sustainability benchmarks will not be eligible.

Boosting Charging Infrastructure

Alongside the Electric Car Grant, the Government has pledged £63 million to expand charging access across the UK. This includes:

• £25 million to help local authorities install under-pavement cabling, making home charging possible for households without a driveway.

• An additional 100,000 public chargers by 2029, almost doubling the UK’s network to more than 180,000.

• £30 million to support businesses moving their fleets to electric.

• £8 million to fund EV chargers at over 200 NHS sites.

What This Means for Drivers

With just over a quarter of new cars currently electric (25.2%), and the Government’s ZEV Mandate pushing for 28% by next year, this new grant could be a game-changer.

At Dumpton Park Nissan, we believe this initiative opens the door for more drivers to make the switch to electric. Lower upfront costs combined with reduced running expenses – from cheaper charging to lower servicing costs – mean there’s never been a better time to explore an EV.