An electric vehicle (EV) grant is government funding designed to reduce the cost of buying electric or plug-in hybrid vehicles. These grants make zero-emission cars more affordable for everyday drivers whilst helping the UK reach its net-zero emissions target by 2050.
In simple terms, EV grants work like vouchers. The government pays part of your car’s purchase price directly to the dealer, reducing what you pay upfront.
How Electric Vehicle Grants Work in Practice
The process is straightforward. When you buy an eligible electric vehicle from an approved dealer, they apply the grant discount automatically at the point of sale. You don’t need to fill out separate forms or wait for reimbursement.
The dealer handles all paperwork with the government’s Vehicle Certification Agency (VCA). You simply pay the reduced price and drive away your new electric car.
Current UK EV Grant Amounts
The UK government currently offers these electric vehicle grants:
Plug-in Car Grant (Ended March 2022)
- Previously offered up to £1,500 for eligible cars
- Replaced by targeted support for specific vehicle types
Current Grant Structure:
- Cars: No current grant available for private buyers
- Vans: Up to £2,500 for small vans, £5,000 for large vans
- Motorcycles: Up to £500 for electric motorcycles
- Taxis and wheelchair accessible vehicles: Up to £7,500
Types of Electric Vehicle Grants Available
1. Plug-in Van Grant
Small vans (under 2.5 tonnes) receive up to £2,500 off the purchase price. Large vans (2.5-4.25 tonnes) qualify for up to £5,000 reduction.
Eligible vans must:
- Produce zero CO2 emissions when driven
- Have a minimum electric range of 60 miles
- Cost less than £35,000 (small vans) or £60,000 (large vans)
2. Motorcycle Grant
Electric motorcycles and mopeds receive up to £500 off the purchase price.
Requirements include:
- Battery capacity of at least 2kWh
- Top speed over 31mph
- Purchase price under £10,000
3. Wheelchair Accessible Vehicle Grant
These specialised vehicles receive the highest grant of up to £7,500.
Vehicles must:
- Be purpose-built or converted for wheelchair access
- Meet specific accessibility standards
- Cost under £60,000
4. Taxi Grant
Electric taxis receive up to £7,500 support.
Eligible vehicles must:
- Be purpose-built hackney carriages or wheelchair accessible
- Meet local licensing requirements
- Cost under £60,000
Electric Vehicle Grant Eligibility Requirements
Vehicle Requirements
All grant-eligible vehicles must meet strict criteria set by the Department for Transport:
- Zero emissions capability: Vehicles must produce no CO2 when driven in electric mode
- Safety standards: Must pass European safety tests
- Price limits: Maximum purchase prices vary by vehicle type
- Range requirements: Minimum electric range varies by category
Buyer Eligibility
Most grants are available to:
- Private individuals
- Businesses
- Local authorities
- Housing associations
Some grants have additional restrictions. For example, the taxi grant is only available to licensed taxi operators.
Dealer Requirements
Only approved dealers can apply grants. These dealers must:
- Register with the Vehicle Certification Agency
- Meet specific training requirements
- Follow grant application procedures correctly
How to Apply for an EV Grant
Step 1: Check Vehicle Eligibility
Visit the official government website to confirm your chosen vehicle qualifies for a grant. The site maintains current lists of eligible models.
Step 2: Find an Approved Dealer
Only certain dealers can apply grants on your behalf. The government maintains a list of approved retailers on their website.
Step 3: Purchase Process
The dealer applies the grant discount automatically during your purchase. You’ll see the reduction on your final invoice.
Step 4: Dealer Handles Paperwork
Your dealer submits all necessary documentation to the VCA. This includes:
- Vehicle registration details
- Purchase proof
- Grant application forms
EV Grant Application Process Timeline
| Stage | Timeframe | Action Required |
|---|---|---|
| Research | 1-2 weeks | Check eligible vehicles and dealers |
| Shopping | 2-4 weeks | Compare models and prices |
| Purchase | 1 day | Buy vehicle with grant applied |
| Registration | 1-2 weeks | Dealer registers vehicle with DVLA |
| Grant Processing | 4-6 weeks | VCA processes dealer’s grant claim |
Regional and Local EV Grants
Beyond national grants, many local authorities offer additional support:
Scotland
The Scottish government previously offered interest-free loans for electric vehicles. Current support focuses on charging infrastructure through Transport Scotland.
Wales
Wales provides grants for electric vehicle charging points in homes and workplaces through local authorities.
London
The Mayor of London offers various schemes including:
- Scrappage programmes for older vehicles
- Business support for electric vehicle fleets
- Enhanced charging infrastructure
Local Authority Schemes
Many councils offer additional incentives:
- Reduced parking charges
- Free parking in city centres
- Access to bus lanes
- Business rate reductions
Comparing EV Grants with Other Incentives
Company Car Tax Benefits
Electric vehicles enjoy significant company car tax advantages:
- 2% benefit-in-kind rate for fully electric cars
- Substantial savings compared to petrol or diesel equivalents
Fuel Cost Savings
Electric vehicles offer lower running costs:
- Electricity costs roughly 3-4p per mile
- Petrol costs approximately 12-15p per mile
- Average annual saving of £800-1,200
Maintenance Savings
Electric vehicles require less maintenance:
- No oil changes needed
- Fewer moving parts mean less wear
- Regenerative braking reduces brake wear
Common EV Grant Mistakes to Avoid
Buying from Non-Approved Dealers
Only approved dealers can apply grants. Buying elsewhere means missing out on available funding.
Exceeding Price Limits
Each grant category has maximum vehicle prices. Expensive models won’t qualify regardless of their green credentials.
Waiting Too Long
Grant schemes change regularly. Available funding may be reduced or ended with short notice.
Not Checking Current Eligibility
Government websites provide the most up-to-date information. Relying on outdated sources can lead to disappointment.
Future of Electric Vehicle Grants
The UK government continues evolving its approach to electric vehicle support. Recent changes show a shift towards:
Targeted Support
Rather than blanket car grants, funding now focuses on specific vehicle types like vans and taxis where electric adoption lags.
Infrastructure Investment
Major funding goes towards charging infrastructure rather than vehicle purchase grants.
Business Focus
Support increasingly targets commercial users who can accelerate overall electric vehicle adoption.
Financial Impact of EV Grants
Purchase Price Reduction
Current grants can reduce purchase costs by:
- Up to £2,500 for small electric vans
- Up to £5,000 for large electric vans
- Up to £7,500 for taxis and wheelchair accessible vehicles
Total Cost of Ownership
When combined with other benefits, electric vehicles often cost less over three to five years despite higher purchase prices.
Business Benefits
Companies benefit from:
- Reduced fuel costs
- Lower maintenance expenses
- Tax advantages
- Enhanced corporate sustainability credentials
Electric Vehicle Grant Alternatives
Personal Contract Purchase (PCP)
Many manufacturers offer attractive PCP deals for electric vehicles, sometimes more valuable than government grants.
Salary Sacrifice Schemes
Employees can lease electric vehicles through salary sacrifice, offering significant tax savings.
Manufacturer Incentives
Car makers often provide their own grants, cashback offers, or special finance deals.
Energy Company Schemes
Some energy providers offer discounted electricity rates or free charging for electric vehicle owners.
Maximising Your EV Grant Benefits
Research Thoroughly
Compare all available incentives, not just government grants. Manufacturer offers and local schemes can provide better value.
Time Your Purchase
Grant availability changes regularly. Stay informed about upcoming policy changes that might affect available support.
Consider Total Costs
Look beyond purchase price grants. Running cost savings often exceed initial grant values over a vehicle’s lifetime.
Business Planning
Companies should consider fleet-wide electric adoption to maximise cumulative grant benefits and operational savings.
Summary
Electric vehicle grants represent one part of the UK’s comprehensive strategy to accelerate zero-emission vehicle adoption. While passenger car grants ended in 2022, substantial support remains for vans, motorcycles, taxis, and wheelchair accessible vehicles.
The key to maximising EV grant benefits lies in understanding current eligibility requirements, working with approved dealers, and considering grants alongside other electric vehicle incentives.
As the electric vehicle market matures, government support continues evolving. Future policy will likely focus on infrastructure development and targeted support for specific vehicle segments where adoption remains challenging.
For most buyers, the combination of lower running costs, tax benefits, and improving electric vehicle technology makes the switch worthwhile regardless of available grants.
Frequently Asked Questions
Are there still electric car grants available for private buyers in the UK?
No, the plug-in car grant for private buyers ended in March 2022. However, grants remain available for electric vans, motorcycles, taxis, and wheelchair accessible vehicles.
How much can I save with current EV grants?
Current savings depend on vehicle type: up to £2,500 for small vans, £5,000 for large vans, £7,500 for taxis and wheelchair accessible vehicles, and £500 for motorcycles.
Do I need to apply separately for an EV grant?
No, approved dealers handle all grant applications automatically during your purchase. The discount appears on your final invoice.
Can I combine EV grants with other incentives?
Yes, government grants can often be combined with manufacturer offers, local authority schemes, and finance deals for maximum savings.
Will EV grants come back for private cars?
The government hasn’t announced plans to reintroduce private car grants. Current policy focuses on supporting commercial vehicles and charging infrastructure development.