28 July 2025

Electric Car Grant: Who Qualifies and How Much You Can Save

What is the new electric car grant?

The government has announced £650 million in grant funding to incentivise drivers to get their first electric car. Here’s a quick breakdown of what’s included:

What cars qualify?

The grant is limited to cars with an RRP of £37,000 or less, and is separated into two stages: up to £3750 for vehicles with the lowest carbon and sustainability credentials – some EVs are excluded due to high-carbon emissions during manufacture - and up to £1500 for other EVs under the price cap.

Who qualifies for the scheme?

Fleet operators are eligible across the board, with no cap on the number of vehicles the grant can be claimed against. Salary sacrifice employees can benefit from lower monthly costs, as well as enjoying tax and NI savings – and the lower P11D value of the car means you'll pay less Benefit in Kind tax too!

Employer and fleet benefits

First and foremost, the grant will save you money, which in turn lowers your total cost of ownership, and operational costs – not to mention cost savings in relation to fuel! There's also the possibility to tie these savings in with other government grant schemes, including £25 for sub-pavement chargers and £30 for fleet charging infrastructure too, saving even more money.