On 16 July 2025, the government announced a £650m grant scheme for buyers of new electric vehicles (EVs).
Electric vehicles (EVs) are becoming more ubiquitous on British roads. As of June 2025, there are well over 1.5 million fully electric cars in the UK – up from fewer than 400,000 in 2021. In 2024 alone, the country saw 381,970 electric car sales – almost 20% of all new cars sold.
But there is still a long way to go. New petrol and diesel cars continue to pour off production lines. And, although their sale is set to be banned in 2030, with a ban on the sale of new hybrid vehicles set to follow in 2035, the used petrol and diesel market will continue to operate actively for many years. For a country struggling with the rising cost of living, the fact is that petrol and diesel vehicles are cheaper to purchase. Although electric cars are cheaper to run, the up-front cost of purchasing one is prohibitive for many.
Introducing the Electric Car Grant
That’s why the government has introduced the Electric Car Grant (ECG) - a £650 million funding package to support consumers purchasing EVs costing £37,000 or less.
A maximum of £3,750 will be available for buyers of very low-emission EVs, with a lesser grant of £1,500 available to support the purchase of cars meeting minimum sustainability criteria.
This is likely to mean a surge in consumers looking for a professional electrician to install an EV charger at their property. If you are one of them, check out our comprehensive guide to EV charging for more information about the process. And when you do go ahead, make sure you use a registered electrician with a recognised certification body such as NICEIC to ensure a safe installation that complies with all the latest regulations.
Eligibility criteria
To be eligible for the grant, your electric car must feature on the government’s list of approved vehicles and meet minimum sustainability requirements.
You can visit the government website for a full list of eligibility criteria.
A complete package of EV funding
The EVG is accompanied by a wider £63m funding package to support the rollout of EVs across the UK.
This includes:
- a £25m scheme for local authorities to unlock cheaper at-home charging using cross-pavement technology
- £30m for businesses operating EV fleets to install charging points at depots
- £8m for the NHS to invest in electric ambulances and fleets.
The government says it’ll also be modernising EV charging signage to help drivers locate their nearest public charging station.
At NICEIC, we welcome this clear sign of intent from the government to accelerate the shift to electric vehicles and significantly ramp up the rollout of charging infrastructure. Any individual or business eligible for EV charging funding should ensure they use an NICEIC-registered electrician with experience in the installation of EV chargers, ensuring a safe and compliant installation.
Will the grant really increase EV uptake?
With new electric cars coming in at a higher price point than their petrol and diesel counterparts, you might be wondering if the grant will make purchasing an EV worth your while.
If you’re looking for rock bottom prices, then the grant probably isn’t going to be enough to convince you – you’ll likely find what you’re looking for on the thriving second-hand market. Remember, you can buy second-hand electric vehicles, too!
If you already want to invest in a brand-new car, though, the grant might help sway your decision in the direction of an EV. While the grant might not bring the price down to parity with an equivalent petrol or diesel vehicle, it will likely narrow the gap.
Throw in the significantly lower running costs of EVs into the mix, and you have a compelling argument for buying a new EV rather than plumping for a petrol, diesel or hybrid option.
Costs aside, many environmentally-conscious consumers have already made the choice to switch to an EV because they are looking to reduce their personal carbon footprint.
Mike Hawes, Chief Executive at the Society of Motor Manufacturers and Traders (SMMT), certainly thinks the grant will boost EV uptake among the UK population. He said:
“Today’s announcement of the return of government support for the purchase of electric vehicles is a clear signal to consumers that now is the time to switch.
“Rapid deployment and availability of this grant over the next few years will help provide the momentum that is essential to take the EV market from just 1 in 4 today, to 4 in 5 by the end of the decade.”
Installing an electric charging point at your property
If you don’t already have one, you might be wondering whether you need to install an EV charger at home. After all, you don’t have a home petrol station for your petrol car!
Well, we’d say it’s definitely recommended to get an EV charger installed. It’s simply cheaper and more convenient to charge your car at home, especially if your energy provider offers cheaper off-peak electricity or a specialist EV charging tariff. You’ll also start off with a full ‘tank’ every day, minimising the need to visit more expensive public charging points en-route.
If you’re interested in having an EV charger installed, read our comprehensive guide to understand more about the installation process and the type of charger that might be most suitable for you. When you’re ready to go ahead, use the NICEIC Find a Trusted Tradesperson tool to get a quote from NICEIC-registered electricians near you.
