Labour hails success of Electric Car Grant as 140,000 Britons save up to £3,750 on popular EVs

RSS Aggregator

Jul 15, 2026 - 12:51

Labour hails success of Electric Car Grant as 140,000 Britons save up to £3,750 on popular EVs

Labour's Electric Car Grant has supported more than 140,000 drivers in getting behind the wheel of an EV as the Government celebrates one year of the incentive scheme.

July 15 marks one year since the Electric Car Grant was launched after the Government pledged an initial £650million, and further backed by £1.3billion by Chancellor Rachel Reeves.

The scheme provides drivers with two potential discounts of £1,500 or £3,750 on electric cars with a list price of up to £37,000.

Dozens of models are eligible for the scheme, including the electric variant of the UK's best-selling car, the Ford Puma, as well as EVs from Vauxhall, Mini and Volkswagen.

More than 140,000 people have made a saving on their electric vehicle purchase since the scheme launched 12 months ago, with tens of thousands more set to benefit in the coming months and years.

Some of the models included in the Grant are now cheaper than their petrol or diesel counterparts, including the Ford Puma Gen-E and Vauxhall's lineup.

More electric cars are expected to be introduced to the scheme soon, especially as brands continue to release new zero emission vehicles in response to growing demand.

In June, 63,950 new electric cars were registered in the UK, marking a 35 per cent jump in year-on-year sales, and capturing 30 per cent of the total market share.

Kia EV4, electric car charger and the Nissan Micra

Aviation, Maritime and Decarbonisation Minister Keir Mather highlighted how demand for EVs was "stronger than ever and only going in one direction".

He added: "We've made it easier and cheaper than ever before to go electric, and with savings of up to £1,400 on running costs, there's never been a better time to make the switch, especially against the backdrop of global fuel price fluctuations."

Manufacturers must meet environmental and sustainability targets to be included in the Electric Car Grant, which has prompted ineligible brands to launch their own incentives, further reducing the price of new EVs.

Commenting on the Electric Car Grant, Simon Williams, head of policy at the RAC, noted that the organisation had been calling for an incentive to be reintroduced by the Government, adding that it was "great" to see it having such a big impact.

LATEST DEVELOPMENTS

"The high upfront cost of a new EV has long been the biggest obstacle in the way of wider adoption," Mr Williams said.

He highlighted that all new electric cars being purchased will eventually feed into the second-hand market, allowing all drivers to have the opportunity to go electric.

John Veichmanis, CEO of Carwow Group, concluded: "A year on, the direction of travel is clearly positive - our data shows EVs now account for 34 per cent of car-buying enquiries on Carwow, up from 24 per cent before the grant landed.

"Add in fuel prices that remain volatile and the growing cost advantage of charging at home, and it's easy to see why more drivers are making the switch."