The Labour government has expanded its £650 million Electric Car Grant, making four more electric vehicle (EV) models eligible for a discount of up to £3,750, aimed at making EVs more affordable and encouraging their adoption. The scheme, launched in July 2025, provides discounts at the point of sale for new eligible electric cars priced at or under £37,000, with funding available until the 2028-2029 financial year. This initiative is part of a broader government plan to phase out the sale of new petrol and diesel cars by 2030 and to support the UK's transition to net-zero emissions.
Among the newly qualified vehicles for the full £3,750 grant are the Citroën e-C5 Aircross Long Range, Ford Puma Gen-E, and Ford E-Tourneo Courier. The Citroën e-C5 Aircross Long Range is particularly noted as the first vehicle of its size and type to receive the full grant, offering a 97 kWh battery for up to 422 miles of electric driving. Overall, more than 40 EV models from various brands, including Ford, Volkswagen, and Nissan, now qualify for either the £3,750 or a £1,500 grant.
The government's objective is to tackle the upfront cost of electric vehicles, which has been identified as a key barrier for many potential buyers. Since its launch, the grant has already benefited over 30,000 drivers, contributing to a significant increase in electric vehicle sales, with EVs accounting for over 25% of the market share in October 2025. Keir Mather, the Aviation, Maritime and Decarbonisation Minister, highlighted that the grant offers drivers more choice and bigger savings.
The scheme has faced criticism from the Conservative shadow transport secretary, Richard Holden, who called the £1.5 billion in EV subsidies "madness" and questioned the priority of handing out discounts on new electric cars while families face increased taxes and inflation. Despite this, the government affirms its commitment to the transition to electric vehicles, seeing it as crucial for meeting net-zero goals and boosting economic growth and jobs in the UK. Alongside the purchase grants, there are also plans to accelerate the rollout of charging points across the UK with an additional £200 million investment, building on a previously committed £400 million.