Government launches £650M electric vehicle grant
The UK government has just charged up the electric vehicle (EV) market with a new £650 million grant scheme, to make it easier and more affordable to switch to low-carbon driving.
Announced by the Transport Secretary on 15 July 2025, the Electric Car Grant (ECG) offers up to £3,750 off the price of a new EV, helping households across the country embrace a low-carbon future.
What’s the new electric car grant (ECG) about?
The ECG is part of the government’s wider plan to boost economic growth and support working families, while accelerating the change to driving zero-emission vehicles.
- Launch date: 16 July 2025
- Applies to: New electric cars priced at, or below, £37,000
- Eligibility: Manufacturers must meet strict sustainability standards
- Duration: Runs until the 2028/29 financial year
Once approved, eligible EVs will be discounted at the point of sale and no paperwork is needed to be filled in from the buyer.
Why the ECG matters now:
The government’s announcement comes at a pivotal moment for the UK’s EV market:
- Britain is now the largest EV market in Europe, outpacing Germany and France in new EV sales
- The UK registered over 370,000 new EVs in 2024 and more than 210,000 in the first half of 2025, showing ongoing demand which this grant will only help grow.
This shows that the UK’s leading the charge for mass EV adoption.
What are the pros and cons of the ECG?
| Pros | Cons |
| Lower upfront costs | Only cars under £37,000 eligible |
| No paperwork for buyers | Not all makes and models are eligible: Keep up to date with the latest eligible makes and models |
| Supports sustainability | Time-limited - running until 2028/29 financial year |
| Supports the needs and wants of UK drivers | Applicable to new cars only |
| Makes going electric more affordable for many people | Manufacturers will need to apply got the grant, and not all cars will be eligible |
Once manufacturers apply and are approved, eligible EVs will be discounted at the point of sale— with no paperwork needed from buyers. With 34 EV models already under £30,000, the grant could be a game-changer for EV affordability.
Manufacturers step in early
To avoid delays, some carmakers are offering their own grants ahead of the government rollout:
- MG Motor UK: £1,500 grant on the MG4 and MG5 EV, on top of existing dealer incentives
- GWM UK: £3,750 grant on the ORA 03, matching the government’s top offer and bypassing eligibility uncertainty
These manufacturer incentives show strong industry support for electrification, and a shared commitment to making EVs a reality for more UK drivers.
How we’re helping you go electric for less
We’re making it even easier to take advantage of the new grant and save even more money with our full ecosystem of support. On top of the grant, you can also get:
Affordable home charging options
Save more with our EV tariffs
Our GoElectric tariff helps you charge at home for less. With an off-peak rate as low as 9p per kWh, you can fully charge your car overnight for under £10 - all while you sleep.(1)
Add our Smart Charging bolt-on when you join either our GoElectric or Evolve tariffs, and we’ll automatically charge your car when electricity is at its cheapest.
The Smart Charging tariff bolt-on also gives you cheaper off-peak rates beyond the usual 12am–5am window for both your EV and your home, and you get £5 off your bill every month. With all these perks, you could save up to £567 a year.(2)
It’s a smarter, more affordable way to charge your EV!
Lease with confidence with DriveElectric
Through our partnership with DriveElectric, you can lease a wide range of EVs eligible for the new grant. With the discount applied upfront, monthly payments are now more affordable than ever before: making leasing a smart, flexible way to go electric.
Home charging your way
We offer three flexible ways to install your EV charger at home, in partnership with Pod:
- Buy your charger outright - from £849 with a 5-year warranty.
- Plug & Power Bundle - pay £499 upfront and spread the rest over two years. Don’t miss out on our £100 summer credit offer!
- Pod Drive - Subscribe for just £40/month with a £99 setup fee, lease your charger and get a lifetime warranty, and up to 7,500 paid miles.
All options include Which? standard installation and work seamlessly with our EV tariffs.
Ready to make the switch to driving electric?
The ECG is a major step forward for UK drivers, and we’re here to help you make the most of the grant. Whether you're buying, leasing, or just exploring your options, our EV ecosystem supports every step of your electric journey.
Let’s drive the future together!
Charge up your EDF rewards!
Each time a friend you referred joins us, you’ll both get £50 to enjoy!
So, what’re you waiting for? Drive savings home! T&Cs apply
Related articles
Should I fix my energy tariff?
