Top 5 Electric Vehicles You Can Purchase with Labour's New £3,750 Electric Car Incentive
The UK government has reintroduced the Electric Car Grant (ECG) to encourage more private buyers to switch to electric vehicles (EVs). This £650 million program, running through to the 2028-2029 financial year, aims to make the most financially attainable EVs even more affordable.
Starting from July 16, 2025, the ECG will offer subsidies on fully electric models priced at £37,000 or less. The grant amounts and eligibility are based on strict sustainability criteria to ensure that the vehicles are not only better for drivers' wallets but also better for the planet.
To be eligible, cars must have zero tailpipe emissions, a minimum WLTP range of 100 miles, a battery warranty covering at least 8 years/100,000 miles with 70% capacity retention, and a general vehicle warranty of at least 3 years/60,000 miles. They must also comply with UN Regulation No. 100 type approval and be assembled in countries with low-carbon electricity grids.
Manufacturers must demonstrate low production emissions and verified Science Based Targets to qualify for the highest subsidy band, which offers up to £3,750. Cars or batteries produced in regions with high carbon intensity grids, notably China, tend to score lower on sustainability, affecting eligibility.
Vehicles meeting the least sustainability standards will receive up to £1,500. Those failing to meet the criteria will not receive a grant at all. Over 50 EV models from 27 brands currently priced under £37,000 are potentially eligible.
The RAC states that the grant's restrictions mean drivers will be choosing models that are not only better for their wallets but better for the planet. Motorists will not need to fill in any additional paperwork to receive the grant, with all administration handled by the car maker, dealership, and the government.
However, due to the application process, it may take weeks for discounted EVs to begin appearing in showrooms. The value deducted from the recommended retail price for each model is determined by how green the manufacturing process is. Threshold levels to achieve the full £3,750 discount or the lower banded £1,500 have yet to be made public.
This grant is part of the government’s efforts to boost EV sales before the end of the decade, supporting the 2030 petrol/diesel ban and working alongside expanded EV charging infrastructure investments. This initiative is expected to accelerate the adoption of EVs in the UK, making them more affordable and environmentally friendly.
[1] Source: gov.uk/government/publications/electric-vehicle-grant-eligibility-criteria/electric-vehicle-grant-eligibility-criteria [2] Source: gov.uk/government/news/government-launches-650-million-electric-vehicle-grant-to-make-new-cars-more-affordable [3] Source: bbc.co.uk/news/business-64360188 [4] Source: autocar.co.uk/car-news/new-cars/uk-government-launches-650m-electric-car-grant-scheme [5] Source: cardealermagazine.co.uk/news/2023-03-16/uk-government-to-introduce-new-electric-car-grant-from-2025
- The reintroduced Electric Car Grant (ECG) in the UK aims to make electric vehicles (EVs) more affordable, promoting a shift towards sustainable lifestyle choices in the finance industry.
- To be eligible for this grant, cars must meet strict sustainability criteria, including zero emissions, energy efficiency, and compliance with international regulations, ensuring a greener future for entertainment, education-and-self-development, and general-news sectors.
- The UK government's investment in the ECG is part of a broader strategy to increase EV sales, aligning with the anticipated 2030 petrol/diesel ban and the expansion of EV charging infrastructure. This initiative also supports the goal of reducing carbon footprints in the technology, energy, and sports industries.
- The eligibility criteria and threshold levels for the grant's subsidies are yet to be announced, but the offer is expected to benefit manufacturers with low-carbon production processes, contributing to advancements in the insurance and savings sectors.
- The new Electric Car Grant (ECG) program, running until the 2028-2029 financial year, is expected to accelerate the adoption of EVs in the UK, creating a greener and more sustainable automotive industry.
