UK Launches £650m Electric Car Grant Scheme

The UK government has introduced a £650 million Electric Car Grant scheme, offering up to £3,750 off eligible new electric vehicles priced at £37,000 or less, to boost EV affordability and facilitate the shift away from petrol and diesel cars by 2030. The grant starts on 16 July 2025 and will continue until at least 2029, with incentives scaled based on the sustainability of the vehicles. This new scheme replaces the previous Plug-in Car Grant and aims to address slower-than-expected private EV uptake. In addition to subsidies, the government is enhancing support for at-home and public charging infrastructure and requiring manufacturers to increase annual zero-emission vehicle sales. However, critics point out that many EVs exceed the price cap and are ineligible for discounts. Local authorities are also piloting pavement-embedded charging cables to improve charging access for residents without private driveways.