Electric Car Grant 2026: How the UK EV Grant Works and How to Claim

Announced by the Department for Transport in July 2025 and backed by £650 million of funding, the Electric Car Grant (ECG) is the first direct purchase incentive for private EV buyers since the Plug-in Car Grant was withdrawn in 2022.

Below, we run through how much the grant is worth, which cars qualify, who is eligible and how the saving reaches you.

What is the Electric Car Grant (ECG)?

The Electric Car Grant is a UK Government incentive, backed by the Department for Transport (DfT), designed to bring down the upfront cost of buying a new electric car.

Unlike its predecessor, the discount is applied automatically at the point of sale by the participating dealer or manufacturer, rather than being claimed back afterwards.

To qualify, a car generally needs to adhere to the following criteria and pass an assessment:

• produce 0 g/km CO₂ at the tailpipe
• have a minimum battery range of 100 miles (160 km)
• have a 3-year or 60,000-mile warranty, whichever is reached first
• be powered by a battery with an 8-year or 100,000-mile warranty, whichever is reached first
• meet minimum sustainability criteria, comprising:
  • verified Science-Based Targets (SBTi) for emissions reduction
  • low-carbon vehicle assembly (up to 30% of the manufacturer’s sustainability score)
  • low-carbon battery production (up to 70% of the manufacturer’s sustainability score)

Manufacturers are then placed into one of two discount tiers based on their combined sustainability score: either band 1 (£3,750 grant) or band 2 (£1,500).

Buyers don’t apply for the grant themselves; eligibility and the discount amount are determined by which cars and manufacturers have been approved under the scheme, and the saving simply appears in the price you’re quoted.

This marks a return of direct EV purchase support after a four-year gap. The original Plug-in Car Grant ran from 2011 until it was withdrawn in June 2022, once the Government judged that EV uptake no longer needed direct subsidy.

The ECG reinstates that support for 2026, but with a more targeted, sustainability-linked structure rather than a flat discount for every qualifying model.

How much is the EV grant worth in 2026?

The grant is worth up to £3,750 or £1,500, depending on how green the car and its manufacturer are judged to be. Rather than a flat discount for every model, the ECG uses two bands, and a car’s band is set by its manufacturer’s overall sustainability score.

In practice, the higher band rewards the greenest production. A car is more likely to reach band 1 where its maker holds verified emissions-reduction targets and can demonstrate low-carbon vehicle assembly and battery manufacturing.

You will sometimes see different versions of the same model placed in different bands. For example, the 52kWh Renault 5 sits in band 1, while the 40kWh version sits in band 2.

Which electric cars qualify for the grant?

As mentioned already, there’s a wide array of eligible cars for the EV grant in 2026. A car must meet all the criteria relating to price, emissions, range, warranty and sustainability. If it does, it will pass the assessment and qualify for the discount programme.

Below is a full list of every eligible model mentioned on the UK Government website.

Full list of eligible cars for the EV grant 2026

Band 1 (£3,750 Grant)

• Abarth 500e
• Alpine A290
• Citroën ë-C5 Aircross Long Range
• Fiat 500e
• Fiat 500e Urban Range
• Ford E-Tourneo Courier
• Ford Puma Gen-E
• Kia EV2 Long Range
• Kia EV4
• MINI Countryman Electric
• Nissan LEAF
• Nissan Micra (52kWh)
• Renault 4
• Renault 5 (52 kWh)
• Renault Scenic

Band 2 (£1,500 Grant)

• Abarth 600e
• Alfa Romeo Junior Elettrica
• Citroën ë-C3, Citroën ë-C3 Aircross and Citroën ë-C3 Urban Range
• Citroën ë-C4 and Citroën ë-C4 X
• Citroën ë-C5 Aircross
• Citroën ë-Berlingo
• Citroën ë-SpaceTourer
• Cupra Born
• Cupra Raval
• DS DS3
• DS N°4
• Fiat 600e
• Ford Capri
• Ford Explorer
• Hyundai KONA Electric
• Jeep Avenger
• Jeep Compass
• Kia EV2
• Kia EV3
• Kia PV5 Passenger
• Nissan Ariya
• Nissan Micra (40kWh)
• Peugeot E-208
• Peugeot E-2008
• Peugeot E-308
• Peugeot E-3008
• Peugeot E-408
• Peugeot E-Rifter
• Peugeot E-Traveller
• Renault 5 (40 kWh)
• Renault Megane
• Skoda Elroq
• Skoda Enyaq
• Skoda Epiq
• Toyota C-HR+
• Toyota Proace City Verso
• Vauxhall Astra Electric
• Vauxhall Combo Life Electric
• Vauxhall Corsa Electric
• Vauxhall Frontera Electric
• Vauxhall Grandland Electric
• Vauxhall Mokka Electric
• Vauxhall Vivaro Life Electric
• Volkswagen ID.3
• Volkswagen ID.4
• Volkswagen ID.5
• Volkswagen ID. Polo

Last checked: 16 July 2026. Eligible cars and grant bands can change.

While on the topic of eligible electric cars, it’s worth pointing out some of the big names that do not qualify for the EV grant. The reasons include:

• Exceeding the price cap: Any fully electric car with an RRP above £37,000 does not qualify. This means the EV grant excludes popular EVs such as the Tesla Model 3.
• Not meeting the strict criteria: To be eligible for the EV grant, battery production can make up as much as 70% of a manufacturer’s sustainability score. The vast majority of certain manufacturers’ batteries are made in China, where the local energy grid is carbon-heavy. As a result, models such as the BYD Dolphin and MG 4 miss out on the EV grant.
• Awaiting Government approval: In some cases, EV grant ineligibility simply comes down to manufacturers whose models have yet to receive approval. Some well-known models, such as the Volvo EX30, Dacia Spring and Hyundai Inster, are excluded from the EV grant.

While some popular models have been excluded from the official UK Government EV grant, many manufacturers have bypassed this and launched their own discounts. For instance, Hyundai unveiled a matching ’Hyundai Electric Grant’ programme, offering up to £3,750 off its own EV range to cover the discrepancy for buyers.
 

Who’s eligible, and what’s excluded?

The ECG applies to brand-new electric cars only. Used and second-hand EVs are not covered, and neither are new cars with a recommended retail price above £37,000. This cap rules out pricier models such as the Tesla Model 3.

Because the discount is tied to the car rather than the buyer, it is not limited to outright cash purchases. New EVs taken on personal contract purchase (PCP), hire purchase or lease can still carry the grant, as the saving is built into the vehicle price the finance or leasing company works from. The same goes for salary-sacrifice schemes and company-car or business purchases: where the car itself qualifies, and the provider passes the saving on, the grant reduces the amount financed.

It is always worth confirming with the dealer or scheme provider that the discount has been applied, as the way it filters through to your monthly payment can vary.
 

How do you claim the EV grant?

Here’s the good news: you do not. Unlike the old Plug-in Car Grant, there is no form to fill in and nothing to claim back. The manufacturer and dealer handle the paperwork with the Government, and the discount is simply deducted from the price you are quoted on an eligible car.

In practice, that means the grant should already be reflected in the on-the-road price you see and sign for. All you need to do is choose a qualifying model from a participating dealer, and the saving is applied at the point of sale. If you are comparing quotes, it is worth asking the dealer to confirm that the grant amount (£3,750 or £1,500) has been included, so you know exactly what you are paying.
 

EV Grant vs the home charger grant: what’s the difference?

It is easy to muddle the two, but the Electric Car Grant and the home charger grant are entirely separate schemes. The ECG cuts the price of the car itself. The charger grant helps with the cost of installing a home chargepoint so you can top up where you park.

The charger scheme is the EV chargepoint grant, run by the Office for Zero Emission Vehicles (OZEV). It covers up to 75% of the cost of buying and fitting a home chargepoint, capped at £500. It is no longer open to most homeowners in standard houses: it is now aimed at people who rent their home, and at flat owner-occupiers, provided they have a dedicated off-street parking space. So not having a driveway in the traditional sense need not rule you out – though you do generally need somewhere off-street to fit the chargepoint. There are related grants for landlords and for chargepoints in shared car parks.

The short version: the £3,750 helps you buy the car, and the £500 helps you charge it. So you can potentially benefit from both!
 

Is the EV grant available across the UK, and when does it end?

The Electric Car Grant is a UK-wide scheme, so buyers in England, Scotland, Wales and Northern Ireland can all benefit on eligible new cars.

It opened in 2025, with the first approved models confirmed later that year, and is currently funded through to the 2028–29 financial year. As with any budget-limited incentive, it could close earlier if the funding is used up, and the criteria or banding could be revised along the way. If you are planning a purchase, it is sensible to check a car’s current status before you commit, as the approved list is updated as more models pass assessment.
 

Is it worth waiting for the grant before buying?

If you have your eye on an eligible new EV, there is little to be gained from waiting – the grant is already live, so the saving is available now rather than something coming down the line. The bigger question is how it stacks up against other offers.

The ECG can usually be combined with manufacturer deals such as 0% finance, deposit contributions and free home-charging bundles, which can add up to a substantial saving on top of the grant. And with lower running and maintenance costs than a comparable petrol car, an eligible EV can look increasingly affordable once the grant is factored in.