New initiatives being introduced by the government will see the cost of some new electric cars reduced by up to £3,750 as an approach to encourage drivers to go electric instead of petrol or diesel vehicles.
New Grant to Make Electric Cars More Affordable
Motorists across the UK are set to benefit from significant price cuts on eligible vehicles thanks to a new £650 million scheme announced on the 15th July 2025. The new Electric Car Grant (ECG) offers up to a £3,750 discount for vehicles priced at £37,000 or less.
The new scheme is part of the government’s ‘Plan for Change’ and supports their commitment to phase out the sale of petrol and diesel cars by 2030. It aims to make EV’s more affordable for working families, whilst also boosting the UK’s overall sustainability. The funding will be available from the 16th July 2025, when manufacturers can begin registering their eligible vehicles, and will run through to the 2028-2029 financial year.
The Electric Car Grant has two bands. £3,750 for the most sustainably produced cars and £1,500 for cars that meet some environmental criteria. Vehicles that do not meet the minimum standard are not eligible for the grant- this is to help towards the push to look into carbon emissions across a vehicle’s lifetime.
With upfront costs frequently associated with barrier to EV adoption, this scheme will narrow the price gap between petrol and electric cars, in addition to the £1,500 that could be saved annually in fuel and maintenance costs. Combined with tax incentives, this means that electric vehicles are now cheaper to own than ever. It also complements efforts to expand the UK’s EV infrastructure, which now includes over 82,000 public charge points nationwide, with a new one installed every 30 minutes.
Support Across the Industry
There has been industry-wide support about the grand including:
Heidi Alexander (Transport Secretary)
“This EV grant will not only allow people to keep more of their hard-earned money – it’ll help our automotive sector seize one of the biggest opportunities of the 21st century.”
Simon Williams (RAC Head of Policy)
“Within weeks, discounted cars should start appearing at dealerships across the country. And, as the biggest savings will be given to cars with the strongest ‘green’ manufacturing credentials, drivers will be picking models that are not only better for their wallets, but better for the planet too.“
Vicky Read (CEO of ChargeUK)
“With a commitment to invest £6 billion through to 2030, the UK’s charging industry has rolled out infrastructure ahead of demand to ensure that when drivers switch, the network is there to make charging as convenient as possible. There are now 82,000 public charge points and a new one goes in the ground every 29 minutes on average.“
How Moorgate Finance Can Help
For drivers and businesses looking to take advantage of the new Electric Car Grant, Moorgate Finance provide flexible, tailored finance solutions to make the transition even more accessible. Whether you’re looking to finance a single company car or an entire fleet, we offer flexible solutions to help you take full advantage of the new Electric Car Grant. Our team understands the challenges and opportunities of going electric and can guide you toward the right funding approach for your business.
Ready to get started? Give us a call on 01908 92 62 62 or Apply Now to start the conversation.