UK Government Launches £650 Million Electric Car Grant

The UK government has relaunched the Electric Car Grant to support the transition to zero-emission vehicles, offering £650 million in funding for new electric cars priced at £37,000 or less. Grants range from £1,500 to £3,750, with higher amounts available for vehicles meeting stricter sustainability criteria, reflecting the government's focus on reducing embedded carbon emissions in addition to tailpipe emissions. The scheme is open to both private individuals and businesses, with no fleet order cap, and the grant is provided on top of any manufacturer discounts at the point of sale. Eligible vehicles must meet technical standards, including battery warranty and performance requirements, and manufacturers must hold verified science-based environmental targets to qualify. An online portal managed by the Driver and Vehicle Licensing Agency (DVLA) has been launched for dealerships and manufacturers to process grant claims, which must be verified before payments are made. The grant program is funded through the financial year 2028 to 2029 but may close early if funds are exhausted.