The UK transport secretary has announced a £650m Electric Car Grant (ECG) scheme, worth up to £3,750 per car, to help drivers switch to electric vehicles (EV).
ECG will have a eligibility dependent on the highest manufacturing sustainability standards, DfT reports, with up to £3,750 available at the point of sale for new eligible EVs priced at or under £37,000.
Drivers will start to benefit from discounts as soon as manufacturers successfully apply for their zero emission cars to be part of the grant scheme from 16 July 2025.
READ MORE: UK DfT provides £63m to expand EV charging options
DfT also stated that funding will be available until the 2028 to 2029 financial year, with drivers switching to EVs able to save £1,500 a year in fuel and running costs compared to a petrol car.
RAC head of policy Simon Williams said: “Within weeks, discounted cars should start appearing at dealerships across the country.
“And, as the biggest savings will be given to cars with the strongest ‘green’ manufacturing credentials, drivers will be picking models that are not only better for their wallets, but better for the planet too.
“This is further welcome news following last week’s announcement about more funding for pavement gully charging solutions that will enable those without driveways to charge an EV at home.
“Together, these initiatives should mean more drivers than ever start benefiting from the lower costs of running an electric car.”
Achievements and innovations in EV charging infrastructure will be recognised and celebrated at the fourth annual CiTTi Awards on 25 November 2025 at De Vere Grand Connaught Rooms in London. Visit www.cittiawards.co.uk to learn more about this unmissable event for the UK’s transportation sector!
