What grants are there for electric cars?

What incentives are available for electric vehicles (EVs)?

With the 2030 petrol and diesel ban fast approaching, the Government has introduced grants and incentives to help make EVs more accessible and appealing across the UK.

But navigating the world of electric car grants can feel like being stuck in rush hour traffic – slow, frustrating, and getting you nowhere fast.

That's where we come in. We're here to put the ease in your next car lease, so we've done the legwork for you.

Join us as we dive into what grants are currently available, explore tax incentives that could save you money, and even look at expired schemes (just so you know what you've missed).

We'll also take a peek at what might be introduced in the future – but don’t quote us on it, we sadly don’t have a crystal ball.

What grants are currently available for electric cars?

Electric Car Grant

Available until 2028/29 financial year

The government has just launched a new £650 million Electric Car Grant to make EVs more affordable for more drivers.

You can get up to £3,750 off the price of a brand new electric vehicle priced under £37,000. There's also a second tier of £1,500 for cars that meet slightly different sustainability criteria.

You can apply if:

• You're buying a brand new electric car priced under £37,000
• The car is from a manufacturer with a verified Science Based Target
• The vehicle meets technical criteria including minimum 100-mile WLTP Comb range

How it works:

The discount is applied directly at the dealership – no separate application needed. The scheme is expected to support around 173,000 new electric cars.

The amount you'll get depends on the car's environmental credentials:

• £3,750 for cars with the lowest carbon emission scores
• £1,500 for cars that meet the basic criteria but have higher emissions

It's worth noting that manufacturers need to apply for their vehicles to be approved first. Nearly 50 models are expected to qualify, with more being added over time.

Several manufacturers have already launched their own matching discounts – including Great Wall Motors (£3,750 off ORA 03), Leapmotor (£3,750 off C10), MG (£1,500 off S5 and MG4), Kia (£3,750 off EV3 Air), Hyundai (£3,750 off Inster, £1,500 off other models), Volvo (£1,500 off EX30), Skywell (£3,750 off BE11), and Smart (£3,500 off #1 and £2,500 off #3).

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.

The Electric Vehicle Chargepoint Grant (EVCG)

Available until 31 March 2026

If you're thinking about making the switch to electric but wondering how you'll charge at home, the Electric Vehicle Chargepoint Grant could be just what you need.

You can get up to £350 or 75% off the cost to buy and install a home chargepoint socket, whichever is lower.

You can apply if you:

• Live in a flat you own or rent a residential property
• Have private off-street parking
• Own or use an eligible electric vehicle

Unfortunately, you can't apply if you:

• Live in a house you own (unless it's converted into flats)
• Are a lodger
• Have already claimed this grant or its predecessors
• Are moving house

Your installer will apply for the grant on your behalf. Once approved, they complete the installation and claim the grant – you just pay the remaining cost.

Workplace Charging Scheme (WCS)

Available until 31 March 2026

If you're a business looking to support your staff's switch to electric or need charging for your company fleet, the Workplace Charging Scheme could be just the ticket.

You can get up to £350 per socket or 75% of the total purchase and installation costs (whichever is lower), with a maximum of 40 sockets per business.

You can apply if you're:

• A registered business, charity or public sector organisation
• Located in England, Wales, Scotland or Northern Ireland
• Have dedicated off-street parking for staff and/or fleet use
• Own the property or have landlord consent for installation

Key requirements:

• Parking must be for staff/fleet use only (not customers)
• Each socket needs a minimum 3kW power supply
• Maximum one socket per parking space
• Must use OZEV-authorised installers and approved chargepoint models

You’ll simply need to apply online for a voucher code, then give it to any OZEV-authorised installer. Once they've completed the installation, they'll claim the grant on your behalf – you just pay the discounted amount.

Worth noting: You have six months from voucher issue to complete installation, and you can apply for additional sockets later until you hit the 40-socket limit.

Local Electric Vehicle Infrastructure (LEVI) Funding

For local authorities in England

The Local EV Infrastructure Fund isn't one you can apply for directly as an individual – this one's for local authorities to help residents without off-street parking get access to charging.

But it's still worth knowing about, especially if you're one of the many people who park on the street and have been wondering how you'll manage with an electric car.

Simply put, the fund supports local authorities in England to plan and deliver charging infrastructure for residents without off-street parking. It's split into two types of funding:

• Capital funding to support chargepoint delivery
• Capability funding to ensure local authorities have the staff and expertise to plan and deliver charging infrastructure

Local authorities follow a three-stage process to access their allocated funding, and different areas have different application deadlines:

• Tranche One: Application deadline for 2023/24 funding was 30 November 2023
• Tranche Two: Application deadline for 2024/25 funding was 19 July 2024

The fund aims to deliver a step-change in local, primarily low-power, on-street charging infrastructure across England – basically, more charging points on your street.

Key takeaway: While you can't apply for this directly, it means your local council might be getting funding to install more charging points near you. Perfect if you're thinking about going electric but don't have a driveway.

What tax incentives are there for EVs?

While not grants, tax incentives are well worth noting in this blog.

So, let's dive right in.

Vehicle Exercise Duty (VED)

Vehicle Exercise Duty (VED), also known as road tax, is a tax that all drivers have to pay. It's based on your car's emissions.

Originally, EVs were exempt, and this was a massive selling point.

But from April 2025, it'll be £10 for the first year, then the standard £195 for the following years.

So, rather than an exemption, it's now a discount.

Benefit-in-Kind (BiK) Rates

If you've got a company car that you use for personal journeys, you'll need to pay Benefit in Kind (BiK) tax on it.

But here's the good news – electric vehicles have much lower rates.

The rates:

• Electric vehicles: Just 2% until April 2025 (increasing by 1% each year until 2028)
• Plug-in hybrids: 8-12%
• Petrol/diesel: Much higher rates

Quick example:

If your income is in the 20% tax bracket, with an electric company car worth £30,000:

• 2% of £30,000 = £600
• 20% of £600 = £120 annual BiK tax (just £10 per month)

Key takeaway: Electric company cars offer significant BiK tax savings compared to petrol, diesel, or even hybrid alternatives.

Salary Sacrifice

The UK government introduced electric car salary sacrifice to help drivers access better savings on their journey to net zero.

It's an employee benefit where your company leases an electric car on your behalf.

But how does it work?

Instead of paying with your net salary (after tax), you pay from your gross salary (before tax) – leading to much bigger savings.

Real example: MG4 Trophy Long Range

• Average monthly salary sacrifice: £431
• Employee income tax savings: -£172
• Employee National Insurance savings: -£9
• Average Benefit-in-Kind tax over term: +£40
• You pay: £290

That's a saving of £141 every month, or nearly £1,700 per year.

Salary sacrifice can save you 20-50% on the cost of any electric car by paying from your salary before tax and National Insurance.

Key takeaway: If your employer offers salary sacrifice, it's hands down the cheapest way to get behind the wheel of a new electric car.

What EV grants and incentives might we see in the future?

Carparison doesn’t have a secret crystal ball, but we can guess what might be introduced soon.

The second-hand market for EVs is growing, with big names such as Tesla even having a focus on this market.

Logically, we can expect future incentives to cover second-hand EVs as well.

What expired EV grants are there?

There have been previous grants that have since expired. Let’s have a quick look at these.

The Plug-In Car Grant

Ended: June 2022

This was the big one – offering up to £1,500 (35% of the car's purchase price) towards buying an electric vehicle. Over its 11-year run, it supported nearly half a million EVs and helped sales surge from less than 1,000 in 2011 to almost 100,000 in early 2022.

The government ended it to focus funding on expanding the public charge point network instead.

On-street Residential Chargepoint Scheme (ORCS)

Ended: Closed to new applicants

This scheme allowed local authorities to get up to 75% funding (maximum £13,000) for installing EV chargers on residential streets. It funded 8,354 public charging devices across 146 councils, representing £31.1 million of grant funding.

All projects must be finalised by March 2025.

The Electric Vehicle Homecharge Scheme (EVHS)

Ended: April 2022

This gave homeowners up to £350 towards installing EV charging devices at domestic properties. It installed 340,222 domestic charging devices with £140.8 million in grants over the eight years.

It was replaced by the much more limited EV Chargepoint Grant, which only covers flats and rental properties.

The bottom line

While the grant landscape has shifted, there's still plenty of support available to help you go electric.

From home charging grants to workplace schemes, and especially those game-changing salary sacrifice savings, the path to electric driving is more accessible than you might think.

Whether you're a first-time EV driver or a business looking to electrify your fleet, there's likely an incentive or scheme that can help make the switch more affordable.

The future is electric – and with the right approach, it doesn't have to cost the earth.