Millions of British drivers are preparing to make the jump from petrol and diesel vehicles to electric cars, thanks to the new £3,750 Electric Car Grant (ECG) backed by Labour. The scheme, officially launched in September 2025, is designed to make EVs more affordable and accelerate the UK’s transition to cleaner transport.
The £650 Million Electric Car Grant
The Government has rolled out a £650 million Electric Car Grant to boost EV adoption. This allows drivers to save £1,500 or £3,750 on more than 30 approved electric car models priced under £37,000.
- £3,750 discount applies to select models like the Ford Puma Gen-E and Ford e-Tourneo Courier.
- £1,500 discount applies to a wide range of affordable EVs, including Renault, Peugeot, Citroën, Vauxhall, Toyota, and Volkswagen models.
According to Labour’s Transport Secretary Heidi Alexander, the ECG will help thousands of drivers afford EVs and contribute to the UK’s net zero goals.
Growing Interest in Electric Vehicles
A recent survey shows:
- 35% of Britons are more likely to buy an EV following the grant.
- 55% of drivers plan to buy an EV within the next two years.
- Young adults (17–34 years old) are the most enthusiastic demographic, with many eyeing affordable entry-level EVs.
Renault Leads the Affordable EV Market
French automaker Renault is among the key beneficiaries of the grant program.
- Renault 5 – Priced at just £21,495 after the grant, with a 250-mile range.
- Renault 4 – Starts from £25,495 and offers 247 miles of range with fast-charging.
- Renault Megane – Starts at £30,995 with modern EV tech.
- Renault Scenic – Priced at £35,495, catering to families with space and range.
These models represent some of the most affordable EV options available under the scheme.
Eligible EVs Under the ECG
| Discount Tier | Eligible Models |
|---|---|
| £3,750 Discount | Ford Puma Gen-E, Ford e-Tourneo Courier |
| £1,500 Discount | Citroën e-C3, e-C4, e-C5 Aircross, e-Berlingo, e-SpaceTourer; Cupra Born; DS DS3; Nissan Ariya; Nissan Micra; Peugeot e-208, e-308, e-408, e-2008, e-Rifter, e-Traveller; Renault Alpine A290, Renault 4, Renault 5, Renault Megane, Renault Scenic; Skoda Elroq, Skoda Enyaq; Toyota bZ4X, Toyota Proace City Verso; Vauxhall Astra, Combo Life, Corsa, Frontera, Grandland, Mokka, Vivaro Life; Volkswagen ID.3 |
Expert Views: A Step Forward
Motoring expert and racing driver Jason Plato praised the initiative, saying:
“These results highlight how, when great savings are available on great cars, the grant is working to persuade buyers to move to electric.”
He also noted that outdated concerns about EV range and cost are being challenged as new technology makes EVs cheaper to run than petrol cars over their lifetime.
Why the Grant Matters
The £3,750 Electric Car Grant aims to:
- Reduce the upfront cost of EVs for drivers.
- Encourage wider EV adoption to cut emissions.
- Support the UK’s 2030 zero-emissions target.
- Increase competition and affordability across the EV market.
The introduction of Labour’s £3,750 Electric Car Grant is set to reshape the UK car market, making EVs more accessible to millions of British drivers. With over 30 models eligible, from budget-friendly Renaults to family-oriented Peugeots and Toyotas, the scheme offers an opportunity for households to embrace clean transport without breaking the bank.
This initiative is not just about cheaper cars—it’s about building a sustainable, affordable, and greener future for Britain’s roads.
FAQs
When did the Electric Car Grant launch?
The scheme officially launched in September 2025 with immediate eligibility for approved EV models.
How much can drivers save?
Drivers can save £1,500 or £3,750, depending on the model, if the car costs under £37,000.
Who qualifies for the grant?
Any driver purchasing an eligible EV under the price cap automatically qualifies for the discount.