Drivers can get up to £3,750 off when buying electric cars

Drivers in the UK are now eligible for discounts of up to £3,750 when purchasing electric vehicles, making it more affordable to switch to eco-friendly transport. This incentive aims to boost electric car adoption, reduce carbon emissions, and support the government’s green transition goals. The offer may vary depending on the vehicle model and manufacturer, but it represents a significant step toward encouraging cleaner, more sustainable mobility options for environmentally conscious consumers.

The government is introducing grants aimed at reducing the price of certain new electric vehicles by as much as £3,750 in a bid to shift drivers away from traditional fuel-powered cars. According to the Department for Transport, these subsidies will apply to select models priced under £37,000, with the most eco-friendly cars receiving the largest reductions.

Automakers can start applying for this funding from Wednesday, and the RAC has indicated that discounted vehicles could be available at dealerships in the near future. However, some motorists have expressed concerns to the BBC, noting that the UK must significantly expand its network of charging stations to increase interest in electric vehicles.

The government intends to halt the sale of new petrol and diesel cars by the year 2030.

Through this initiative, discounts will range between £1,500 and £3,750, with manufacturers required to nominate specific models for eligibility, on a first-come, first-served basis. Once approved, automakers will reduce the retail price accordingly, so consumers will see the lower prices directly without needing to take extra steps.

Officials are expected to release a list of approved models shortly. The funding is part of a broader £650 million program designed to make electric vehicles more affordable over the next three years. While there are approximately 1.3 million electric cars on UK roads, the number of publicly available charging stations stands at only about 82,000. Transport Secretary Heidi Alexander recently announced an additional £63 million investment to support the installation of new EV charging points.

EVs tend to cost more upfront than traditional petrol vehicles. Autotrader reports that the average price for a new battery-electric vehicle in June 2025 was around £49,790, based on listed prices across 148 models. In comparison, petrol vehicles averaged £34,225, though both figures span a wide range of market offerings. Despite higher initial costs, EVs often come with lower operating expenses, and new budget-friendly models have entered the market recently.

Zapmap data from June shows that public EV charging costs about 15p per mile for standard chargers, and 23p per mile for high-speed options. Charging at home is typically more economical, with research by Carmoola showing costs between 6p and 9p per mile for a 60kWh vehicle, depending on efficiency.

Steve Catlin, managing director of Vauxhall, told the BBC that while the government’s initiative is appreciated, expanding public charging infrastructure and boosting consumer demand are still essential priorities. He pointed out that the industry's target for EV sales this year is 28%, but the current figure sits at around 21.6%. Catlin also referenced the government’s plan to grow the number of public charging points from 82,000 to 300,000 by 2030.

He noted that with around 40% of UK households lacking a private driveway, many people are less likely to install a home charger, making EV adoption more difficult. Transport Secretary Heidi Alexander emphasized that the new financial support would allow buyers to retain more of their income while helping the UK’s automotive industry seize a major opportunity of this century.

Opposition transport spokesperson Gareth Bacon criticized the policy, claiming Labour is pushing people toward expensive EVs before the infrastructure is ready. He also argued that the policy prioritizes climate goals over practical financial concerns for families, suggesting that many consumers are still not enthusiastic about EVs.

The government maintains that the discounts make electric vehicles more affordable than ever and, combined with favorable tax benefits, will help working families save money. Jimmy Kim, a 43-year-old from London, has been evaluating whether an electric vehicle fits his budget.

He said the financial case for an EV, compared to an efficient petrol or hybrid car, is not convincing. Kim added that when considering long-term costs and depreciation, buying an EV currently seems financially unwise. On the other hand, Paul Cole, aged 38 and also from London, said he’s fully satisfied with his switch to electric. He encouraged others to make the move, particularly if they have access to the right infrastructure.

Cole shared that his house already had a driveway charging point, and since adding solar panels, using an EV became an even more practical decision. To save on electricity bills, he charges his car overnight when rates are lower. Now two years into EV ownership, Cole said he has no regrets.

Carolyn Hammond, 49, who lives in rural North Devon, is interested in owning an EV but says her home has a limited power supply. She contacted the National Grid to inquire about an upgrade but was quoted a price exceeding £16,000 including VAT. Because of this high cost, she concluded that switching to electric is currently too expensive for her household. Drivers using electric company cars can benefit from tax advantages through workplace schemes.

Although similar grants existed before, they were scrapped in 2022 by the Conservative government. The scheme, which started in 2011, aimed to make EVs more accessible by providing financial incentives, beginning with a £5,000 subsidy per car. By the time it ended, the discount had been scaled back to £1,500. At the time, the Department for Transport said the focus of funding would shift to tackling primary barriers to EV adoption, such as charging access and support for commercial EVs like vans, taxis, and motorcycles. Contributions from “Your Voice, Your BBC” and Connie Bowker were included in the original report.

An update published on July 15 clarified that the article originally misrepresented a potential EV buyer’s electricity capacity and has since corrected the statement to reflect that the cost of upgrading her supply was not feasible.

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Source: bbc‍