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Author: Finley Vile | Reading Time: 4 minutes | Published 04/09/2025
Author: Finley Vile
Reading Time: 4 minutes
Published 04/09/2025
One of the biggest barriers to going electric is the cost.
According to Autotrader, the average price of a new battery electric car (BEV) was £49,790 in June 2025, based on manufacturers' recommended prices for 148 models.
The equivalent for a petrol car was £34,225. That's quite a stark difference.
Enter the Electric Car Grant.
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The government has launched a new £650 million Electric Car Grant to make EVs more affordable for more drivers. Available until the 2028/29 financial year, this initiative could help you save up to £3,750 on a brand-new electric vehicle priced under £37,000.
The amount you'll get depends on the car's environmental credentials and which band it falls into:
For a vehicle to qualify for the Electric Car Grant, it must:
The discount is applied directly at the dealership – no separate application needed.
The scheme is expected to support around 173,000 new electric cars. This means you don't have to worry about applying for the discount yourself – the manufacturers handle everything beforehand.
Staying true to our mission of putting the ease in your next car lease, we've rounded up all the eligible vehicles in one convenient list.
So far, 28 cars have been approved for the grant, with around 50 models expected to qualify eventually.
Band 1 Cars (£3,750 discount)
Band 2 Cars (£1,500 discount)
The Government has this handy list that they update whenever they announce a new eligible car.
Several manufacturers have already launched their own matching discounts to amplify your savings:
Recent Autotrader data shows the Electric Car Grant is already accelerating growth across the sector, with eligible car models seeing up to an 80% increase in interest.
In a further bid to bring down costs and encourage people to make the switch, the government announced a £63 million charging package in July.
This includes funding to make charging at home more accessible, meaning EV owners without a driveway can run their EVs for as little as 2p per mile.
The government is also powering up confidence in Britain's charging network, with more than 83,000 public charging devices currently available.
There’s been a new one added every half an hour over the last 12 months – and over 100,000 more are yet to come from the government's £381 million Local EV Infrastructure (LEVI) Fund alone.
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When combined with the potential savings of up to £1,500 a year on fuel and running costs compared to petrol cars, this grant could help many more drivers make the switch to electric.
With the expanding charging infrastructure and increasing range of affordable EVs, there's never been a better time to go electric.
And for those still unsure about committing long-term, leasing provides the perfect solution.
Car leasing offers the flexibility to try out electric driving without the long-term commitment of purchasing. You can experience all the benefits of an EV – lower running costs, smooth driving experience, and reduced environmental impact – while keeping your options open for the future.
We'll keep this list updated as more vehicles are added to the scheme.
The Government maintains a handy list that's updated whenever new eligible cars are announced.
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