In July 2025, the UK government launched a new Electric Car Grant (ECG) to take the place of the original Plug-in Car Grant, which had been wound down in 2022. The new grant works differently — and for buyers, it's worth getting your head around the detail, because the difference between Band 1 and Band 2 is a straight £2,250.
The grant now covers more than 40 EV models, with new vehicles being added every few weeks as manufacturers pass the sustainability assessment. Here's how it works, what you can actually save, and the current eligible list as of May 2026.
How the grant works
The Electric Car Grant is funded by the Department for Transport and is administered through dealers, not through individual buyers. The structure is simple:
- Eligible vehicle: a brand new battery electric vehicle with a list price under £37,000
- Band 1 (greenest credentials): £3,750 off
- Band 2 (eligible but lower scoring): £1,500 off
- How it's claimed: automatically, by the dealer, at the point of sale — the discount appears on your order paperwork
The two-tier banding is based on environmental criteria that look at where and how the vehicle is built, the carbon intensity of its battery supply chain, and the manufacturer's broader sustainability commitments. Manufacturers must also demonstrate real-world range (not just WLTP figures) and offer long warranty cover on the battery.
A model can qualify for both bands across different variants. For example, the Renault 5 E-Tech qualifies for Band 1 in some specifications and Band 2 in others, depending on battery size and trim. Always confirm which band a specific configuration falls into before you order.
What it saves you in practice
The headline numbers translate to meaningful savings on a typical EV purchase. Take a Renault 5 E-Tech (£24,995 list price as of May 2026):
- Without grant: £24,995
- With Band 1 grant (£3,750): £21,245
- Effective discount: around 15% off the list price
For a higher-end eligible model — say a MINI Countryman Electric (£36,000 list price):
- Without grant: £36,000
- With Band 1 grant (£3,750): £32,250
- Effective discount: around 10% off
The grant is most effective on the lower-priced models in the eligible list, where £3,750 represents a larger percentage of the total cost.
Band 1 eligible models (£3,750 grant)
As of May 2026, the following models have Band 1 eligibility. This list grows roughly monthly as new models complete the sustainability assessment.
- Renault 5 E-Tech (select battery/trim combinations)
- Renault 4 E-Tech (all 52kWh variants — French-built battery)
- Renault Scenic E-Tech (newest addition)
- Alpine A290 (shares the Renault 5 platform)
- MINI Countryman Electric (65.2kWh battery versions from the 2026 update)
- Nissan LEAF (latest generation, select trims)
- Ford Puma Gen-E (select battery configurations)
Several other models have applications under review and may be added during 2026.
Band 2 eligible models (£1,500 grant)
Band 2 is the broader list — 30+ models qualify, including:
- Citroën e-C3 and e-Berlingo
- Ford Puma Gen-E (some variants)
- MINI Countryman Electric (lower-spec versions)
- Nissan LEAF (some variants)
- Renault 4, Renault 5 (variants not in Band 1)
- Skoda Elroq and Enyaq (sub-£37k versions)
- Toyota C-HR+
- Vauxhall Astra Electric
- Hyundai, Kia, Peugeot, and VW models meeting the price cap
Eligibility within Band 2 can also depend on battery size, drive type, and trim. If the dealer doesn't volunteer the grant amount, ask explicitly which band the specific configuration falls into.
Note: This list is accurate as of May 2026 but the government updates it frequently as new applications are approved. Always confirm with the dealer or check the live list on GOV.UK before placing an order.
What the grant doesn't cover
There are some important exclusions to be aware of:
- Used EVs: the grant applies only to new vehicles. A 2024 ex-demo car at £29,000 will not attract a grant.
- EVs over £37,000 list price: even by £1. This deliberately excludes premium EVs (Tesla Model Y, Audi Q4 e-tron, BMW i4, Polestar 2, etc.).
- PHEVs and hybrids: the grant is for battery electric vehicles only.
- Commercial vehicles: electric vans have a separate grant scheme with different terms.
- Lease and PCP deals: the grant can still apply, but the saving may be passed through as a reduction in monthly payments rather than a deposit reduction. Read the agreement carefully.
How it stacks with other incentives
The Electric Car Grant is the headline incentive, but EV buyers can typically combine it with:
- Low VED rates — EVs pay £10 in the first year and £200/year standard rate from 2026/27 (electric car road tax in 2026)
- Low company car BiK — 4% for BEVs in 2026/27, rising gradually
- Salary sacrifice schemes — especially powerful when combined with the grant, as the saving compounds through reduced income tax and NI
- OZEV chargepoint grant for renters and flat owners (up to £350 toward a home charger)
- Workplace Charging Scheme for employers (up to £350 per socket, up to 40 sockets)
- Manufacturer deposit contributions — many car-makers add their own discounts on top of the government grant
For most private buyers, the combination of grant + low BiK (if salary sacrificing) is the single biggest financial argument for going electric.
Grant vs used EV: which is actually cheaper?
Even with £3,750 off, a new EV is usually more expensive than a comparable two- or three-year-old used EV. Depreciation in the used EV market has been substantial — a 2023 Renault Zoe or Vauxhall Corsa-e can be £8,000–£10,000 cheaper than its new equivalent today.
The case for the grant is strongest if you:
- Want the latest battery technology, range, and software
- Plan to keep the car for 6+ years
- Are using salary sacrifice (the maths becomes overwhelming)
- Want manufacturer warranty cover from day one
The case for a used EV is stronger if you:
- Want the absolute lowest purchase price
- Are happy with 2022–2024 battery range (which is still strong)
- Plan to keep the car for 3–5 years
Whichever you choose, run a free vehicle check on any used EV before buying — it will show MOT history, mileage trend, and any advisories. Our guide on the real cost of owning an electric car breaks down running costs over a typical ownership period.
EVs still need servicing
A common misconception is that EVs don't need servicing. They do — just less of it. There's no oil, no spark plugs, no exhaust, no cambelt, and no clutch. But brakes, tyres, suspension, cabin filters, coolant for the battery and motor systems, and software updates all still need attention.
Most EVs need an annual service that costs roughly £100–£200 less than the equivalent petrol or diesel car. Battery health checks become important from year 4 onwards, particularly if you're considering resale value.
Compare EV service prices at local garages on BookMyGarage — enter your registration to see prices from independents and franchised dealers near you. Independent specialists are increasingly common and typically charge less than main dealer rates for routine EV servicing.
The bottom line
The Electric Car Grant is the most generous EV incentive the UK has offered since the original Plug-in Car Grant ended in 2022. For Band 1 models under £37,000, a £3,750 discount applied automatically by the dealer can shave more than 15% off the headline price — and stacks cleanly with low BiK, salary sacrifice, and chargepoint grants.
The list is moving fast. New models are added monthly and a handful have already moved between bands. If you're shopping for an EV under £37,000, confirm the exact band for the exact configuration with the dealer before signing — and don't be afraid to push back if they don't apply the grant correctly.
For a wider view of EV adoption trends and incentives, see our EV adoption tracker. For running costs, the real cost of owning an electric car breaks down purchase, charging, and servicing over a typical ownership period. And if you're weighing up petrol vs diesel vs electric on running costs alone, our fuel-type comparison has the per-mile maths.