Thinking of buying an electric car? The government’s back with fresh EV grants – but there’s a catch, and it could cost you more than you think.
Well, it’s finally here – the much anticipated return of EV subsidies in the UK. The government has announced a massive £700 million pot to encourage more people to go electric, offering grants of up to £3,750 off the purchase of a new battery electric vehicle (BEV). Sounds fantastic, right? But wait – before you dash off to your nearest dealership, there are a few important details you really need to understand. Because this time, things are a little different. And if you’re not careful, you might end up worse off!
[UPDATE – here’s the list of eligible vehicles: https://www.gov.uk/plug-in-vehicle-grants/cars]
So what’s the deal?
Starting tomorrow (17 July 2025), new grants will be available for electric cars priced under £37,000. Buyers can receive:
- £1,500 off eligible vehicles as standard
- £3,750 off if you qualify for the enhanced rate (for example, if you’re on certain benefits or trading in a diesel vehicle)
But here’s the twist – the discount isn’t directly handled by the government. Instead, manufacturers must apply to join the scheme and commit to strict Science-Based Targets (SBTs) for emissions reductions. If they’re not signed up, their cars won’t be eligible – no matter how green they look.
And here’s another wrinkle…
Dealers are already offering discounts on EVs to shift stock – we’re talking £4,000 to £6,000 off in some cases. So if you wait for the government grant, you could actually miss out on bigger savings that are available now.
In other words:
Dealer: “Here’s £5,000 off today!”
Government: “Hold on for our grant… maybe £1,500, if your chosen brand plays ball.”
What’s the real game here?
It’s less about helping consumers and more about helping carmakers sell more EVs, which they’ve been forced into manufacturers by legislators and law-makers. But from a car buyer’s perspective, it’s muddy waters.
The real catch? The scheme is confusing, not universal, and won’t apply to all EVs. Some brands may decide it’s not worth it, or can’t meet the emissions criteria (especially if they have net zero ambitions within their own company). So don’t assume that every EV under £37k qualifies.
Should you wait or buy now?
If the EV you want is eligible and the manufacturer is signed up – brilliant! Grab the grant and go electric. But if you’ve spotted a great deal on a car before 17 July, especially one with thousands off already – don’t delay. That bargain might disappear when the scheme kicks in.
Final thought…
This isn’t just about going green – it’s become a tactical buying game. So before you plug in your wallet, plug into the facts. Watch the video above for the full breakdown, and make sure you’re not trading a better deal for a smaller grant just because it sounds more official.
Are you considering an EV? Will this new grant push you to buy or put you off completely? Drop your thoughts in the comments or tag me on social!
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