Electric car grants – the ultimate guide

As Britain’s roads become increasingly dominated by electric vehicles, lots of drivers are contemplating whether to make the switch from their internal combustion vehicles to a hybrid or fully electric one. But it’s an expensive proposition. The UK government recently scrapped its original electric car grant scheme but there are other initiatives underway that can help would-be switchers.

• What car grants are available for electric cars?
• Can you get a grant for an electric car charger?
• Can businesses get a grant for an electric car charger?
• Can you get a grant for a hybrid vehicle?
• What are the government doing instead of an electric car grant?

What car grants are available for electric cars?

The government electric car grant was launched in 2011 to make buying an electric vehicle more affordable and to kickstart the UK’s electric car revolution as we head towards the 2035 switchover. Since its introduction, sales of electric vehicles have increased from 1,000 in 2011 to 100,000 in the first five months of 2022. The first EV grant provided up to 35% off the list price of a new plug-in hybrid or pure electric vehicle up to a maximum of £5,000. However, since 2018, the grant has gradually been cut. Now, (as of 14th June 2022), the grant has been scrapped, as the government claims that successive reductions in the size of the grant and the number of models covered have had little effect on the rapidly accelerating sales, or on the growing range of models being manufactured. They believe that the costs of purchasing an electric vehicle have reduced enough that the grant is no longer necessary. Electric car drivers can, however, continue to benefit from zero road tax and favourable company car tax rates, which can save drivers more than £2,000 a year. All grant applications made before the 14th June 2022 will continue to be honoured. The UK Government has also ensured the Benefit-in-Kind tax rate for EVs is to remain low until 2028, meaning drivers can get up to 60% off an electric car lease with salary sacrifice

Can you get a grant for an electric car charger?

The EV charge point grant replaced the Electric Vehicle Homecharge Scheme (EVHS) on 1 April 2022. The grant provides funding of up to 75% towards the cost of installing electric vehicle smart charge points at domestic properties across the UK. All vehicles that have been approved as ultra-low emission vehicles by OZEV are eligible for government residential charge point grants. Eligible cars for the EVHS include the: Audi Q4 e-tron, BMW 330e, Fiat 500e, Ford Juga PHEV, Honda e, Jaguar I-Pace, Lexus UX 300e, Mercedes-Benz EQC, Mini Electric, Nissan Leaf, Polestar 2, Skoda Enyaq iV, Tesla Model 3, Volkswagen ID.4, Volvo XC40 P8 Pure Electric. 

EVHS also applies to those who lease an electrified vehicle, as the DVLA will accept a claim for short-term, month-on-month leases after a driver has had the lease for at least six months.

Can businesses get a grant for an electric car charger?

The Workplace Charging Scheme (WCS) offers EV charge-point funding support to eligible businesses, charities and public sector organisations. Businesses can apply for up to 40 charge points per company, with a cap set at £350 per socket. Charge points claimed for on the WCS can only be installed by approved OZEV authorised installers.

Can you get a grant for hybrid vehicles?

Plug-in hybrid vehicles were able to receive the same government electric car grants as fully-electric vehicles. The plug-in car grant (PiCG) had three categories of vehicles:

• Category 1
  • At least 70 miles making zero emissions, and a manufacturer guarantee of less than 50g/km C02 emissions
• Category 2
  • At least 10 miles making zero emissions, and a manufacturer guarantee of less than 50g/km C02 emissions
• Category 3
  • At least 20 miles making zero emissions, and a manufacturer guarantee of 50-75g/km C02 emissions

Most plug-in hybrids would have been eligible for one of the categories. To receive the 35% reduction, limited to a maximum of £1,500, category 1 cars needed to cost less than £32,000. Category 2 and 3 vehicles had a maximum reduction of £2,500 and qualified for the 35% reduction if they cost less than £60,000. However reforms to the scheme in October 2018 meant category 2 and 3 cars were no longer eligible for the PiCG scheme. In 2022, category 1 vehicles also become ineligible due to the scheme ending.

What are the government doing instead of the electric car grant?

The government are now refocusing previous grant funding toward public charging and supporting the purchase of other road vehicles where the switch to electric requires further development. £300 million in grant funding will now be refocused on extending plug-in grants to boost sales of plug-in taxis, motorcycles, vans, trucks, and wheelchair-accessible vehicles. Scrapping the electric car grant will allow government funding to target expanding the public charge point network, with £1.6 billion in funding already committed, and will help to eradicate range anxiety and ensure the transition to zero-emission transport is easy and convenient for drivers across the UK.

Ready to sell your car?

Ready to learn more about valuing, maintaining, and selling your car? Check out more of our guides here, covering everything from hybrid and electric car depreciation, to converting your car to dual-LPG fuel.

• Electric cars — the ultimate guide
• How to sell an electric car
• Electric cars — should you buy or sell?
• Selling your car and the 2035 electric car switchover
• What is a hybrid car and how do they work?
• LPG cars — the ultimate guide
• How long does it take to charge an electric car?
• How & where to charge your electric car at home and on the road
• What is a hydrogen fuel cell car?
• Electric car depreciation – the ultimate guide
• Most frequently asked electric car questions