Announced by the Department for Transport in July 2025 and backed by £650 million of funding, the Electric Car Grant (ECG) is the first direct purchase incentive for private EV buyers since the Plug-in Car Grant was withdrawn in 2022.
Below, we run through how much the grant is worth, which cars qualify, who is eligible and how the saving reaches you.
What is the Electric Car Grant (ECG)?
The Electric Car Grant is a UK Government incentive, backed by the Department for Transport (DfT), designed to bring down the upfront cost of buying a new electric car.
Unlike its predecessor, the discount is applied automatically at the point of sale by the participating dealer or manufacturer, rather than being claimed back afterwards.
To qualify, a car generally needs to adhere to the following criteria and pass an assessment:
- produce 0 g/km CO₂ at the tailpipe
- have a minimum battery range of 100 miles (160 km)
- have a 3-year or 60,000-mile warranty, whichever is reached first
- be powered by a battery with an 8-year or 100,000-mile warranty, whichever is reached first
- meet minimum sustainability criteria, comprising:
- verified Science-Based Targets (SBTi) for emissions reduction
- low-carbon vehicle assembly (up to 30% of the manufacturer’s sustainability score)
- low-carbon battery production (up to 70% of the manufacturer’s sustainability score)
Manufacturers are then placed into one of two discount tiers based on their combined sustainability score: either band 1 (£3,750 grant) or band 2 (£1,500).
Buyers don’t apply for the grant themselves; eligibility and the discount amount are determined by which cars and manufacturers have been approved under the scheme, and the saving simply appears in the price you’re quoted.
This marks a return of direct EV purchase support after a four-year gap. The original Plug-in Car Grant ran from 2011 until it was withdrawn in June 2022, once the Government judged that EV uptake no longer needed direct subsidy.
The ECG reinstates that support for 2026, but with a more targeted, sustainability-linked structure rather than a flat discount for every qualifying model.