MSE News

Government cuts electric car grants by £1,000 – here is what is happening

The Government has significantly cut the financial help it is offering motorists wanting to buy a brand new electric car with immediate effect this week, and has also lowered the price cap on cars people can buy under the scheme. 

The move has seen the Government's maximum electric vehicle (EV) grant for those buying an electric car reduced by £1,000 from £2,500 to £1,500 (or no more than 35% of the purchase price of the vehicle). The upper limit on the price of the car (including VAT and delivery fees) you can buy under the scheme has also dropped from £35,000 to £32,000. 

Transport minister Trudy Harrison says the decision to reduce the grant is to "allow more people to benefit" as the funding pot will now go further, while the move to lower the maximum car price under the scheme is to "refocus on the more affordable vehicles". We've asked if there's a limit on the number of people who can now benefit from the scheme and we'll update this story when we know more. 

You don't need to do anything if you want to buy a vehicle under the scheme as the dealer will include the value of the grant in the vehicle’s price - you're not given the grant directly.  You're also still limited to buying a car that can travel at least 112km (70 miles) without any emissions at all. 

There's no change to the electric vehicle grants available for other types of vehicle under the scheme, such as vans and wheelchair accessible vehicles. 

It might also be possible to get money off the installation of a plug-in car charger at your home. See the Government's Electric Vehicle Homecharge Scheme info for further details. 

For guidance on buying a new car see our 20+ Tips for Buying a New Car guide.

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