Motorists buying a new electric car can continue to benefit from a discount of up to £3,750 after the government expanded the electric vehicle grant and extended it to 2030.
In the Autumn Budget, chancellor Rachel Reeves said she would extend the popular scheme which could slash thousands off your EV purchase. The scheme was originally due to end in the tax year 2028/29.
The grant targets lower-cost electric vehicles (EVs), applying only to qualifying cars costing £37,000 or less. The scheme can reduce the price of a new EV by between £1,500 and £3,750.
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Consumers do not have to apply for the grant individually. Instead, it will be automatically applied when you purchase the car, if the manufacturer has made a successful application to the grant.
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Eligibility for the new grant depends on the carmaker meeting certain sustainability standards, with more sustainable cars being given a higher level of subsidy.
Manufacturers have been able to apply for the grant since 16 July, leading to price drops on new models.
More than 40,000 EV drivers have used the incentive since it launched in July 2025.
We explore how much you could save on an EV via salary sacrifice in a separate article.
In July, the government also announced a new £25 million funding package for local authorities to expand access to cheaper at-home charging in a bid to lessen the up-front costs of owning an electric car.
It will help connect at-home charging stations to the same supply as household energy using cross-pavement technology, meaning drivers can use cheaper domestic electricity rates, though some will already be benefitting from the best EV energy tariffs.
Will EVs be cheaper under the new electric car grant?
Manufacturers have had since 16 July 2025 to apply for the new electric car grant, and many have now received the green light.
The size of this discount differs between different models. Some cars benefit from the smaller £1,500 grant, while others are awarded the maximum £3,750 grant.
In total, 43 models of electric car are benefitting from the government subsidy after the Department for Transport expanded the grant to a further four models.
From 3 December, the Mini Countryman, Renault 4, Renault 5, and Renault Alpine A290 will all have £3,750 taken off their price, doubling the number of cars receiving the maximum grant to eight. The remaining 35 models eligible for the grant receive the smaller £1,500 discount.
As the grant is only available for cheaper electric cars which cost £37,000 or less, some of the most popular EVs, like the Tesla Model 3, or China’s BYD Seal will not be eligible for the discount.
Although some EVs will become cheaper thanks to the grant, the cost of running an electric car will still sharply increase after 2028.
While Reeves may have extended the grant, she has also announced a new tax will be levied on electric car drivers.
From April 2028, drivers of fully electric cars will pay 3p for every mile they drive, costing the average EV driver around £255 annually, based on 8,500 mileage per year.
Drivers of hybrid cars will also be taxed 1.5p per mile. The rates will increase in line with inflation each year.
All cars made cheaper by the electric vehicle grant: Full list
The government’s electric car grant is currently split into two bands which determine how much money will be deducted from the price. Cars in Band 1 have £3,750 taken off their price, while those in Band 2 have £1,500 taken off.
A full list of the 43 cars that currently benefit from the government subsidy can be found below.
Band 1 – £3,750 off
- Citroën ë-C5 Aircross Long Range
- Ford E-Tourneo Courier
- Ford Puma Gen-E
- MINI Countryman
- Nissan LEAF
- Renault 4
- Renault 5
- Renault Alpine A290
Band 2 - £1,500 off
- Citroën ë-C3, Citroën ë-C3 Aircross and Citroën ë-C3 Urban Range
- Citroën ë-C4 and Citroën ë-C4 X
- Citroën ë-C5 Aircross
- Citroën ë-Berlingo
- Citroën ë-SpaceTourer
- Cupra Born
- DS DS3
- DS N°4
- MINI Countryman Electric
- Nissan Ariya
- Nissan Micra
- Peugeot E-208
- Peugeot E-2008
- Peugeot E-308
- Peugeot E-408
- Peugeot E-Rifter
- Peugeot E-Traveller
- Renault 4
- Renault 5
- Renault Alpine A290
- Renault Megane
- Renault Scenic
- Skoda Elroq
- Skoda Enyaq
- Toyota Proace City Verso
- Vauxhall Astra Electric
- Vauxhall Combo Life Electric
- Vauxhall Corsa Electric
- Vauxhall Frontera Electric
- Vauxhall Grandland Electric
- Vauxhall Mokka Electric
- Vauxhall Vivaro Life Electric
- Volkswagen ID.3
- Volkswagen ID.4
- Volkswagen ID.5
