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By David Lewis, Electric Vehicle & Clean Energy Journalist.
The UK Government is once again offering significant discounts on new electric cars via the Electric Car Grant. You can get up to £3,750 off eligible EVs priced at £37,000 or below. The grant launched with £650 million of funding, and the Autumn Budget (2025) added a further £1.3 billion for the scheme and extended it to 2030. The good news for lease customers? The grant is applied automatically – there’s no paperwork required.
The UK Electric Car Grant operates on a two-tier system – known as ‘bands’ – with the amount of discount determined by how sustainably the vehicle and its components are manufactured. Both bands apply to electric cars with a recommended retail price (RRP) at or below £37,000.
The maximum grant of £3,750 is reserved for electric vehicles made in the most sustainable way. Manufacturers must hold verified Science Based Targets – corporate emissions reduction goals aligned with the Paris Agreement – to secure the top grant. The government also assesses the carbon footprint of the vehicle’s production process, including the battery cells and the energy sources used in the factories where components are made.
For vehicles with a higher carbon footprint during manufacturing, or that use components sourced from more carbon-intensive energy grids, there is a lower grant of £1,500. This tier includes electric cars that meet all the technical eligibility criteria – zero tailpipe emissions, minimum 100-mile range, and appropriate warranty coverage – but whose manufacturers have not yet achieved the highest sustainability standards required for Band 1.
At time of writing (early February 2026), just 8 models are eligible for the maximum £3,750 discount:
Fortunately, there are lots more cars eligible for the £1,500 discount, and the current list includes:
For an always up-to-date list, please refer to the government’s official page: Electric and hybrid vehicles eligible for a plug-in grant
Here’s a quick summary table of the main qualification criteria for the UK Electric Car Grant:
| Vehicle Type | Must be an M1 passenger vehicle (8 passengers maximum) |
| Emissions | Zero tailpipe emissions (100% electric only – no PHEVs) |
| Battery Range | 100 miles |
| Vehicle Warranty | 3 years, or 60,000 miles, whichever comes first |
| Battery Warranty | 8 years, or 100,000 miles, whichever comes first |
| Starting Price (RRP) | At or below £37,000 |
Manufacturers must also meet sustainability criteria, including verified Science Based Targets.
Interestingly, higher trims up to £42,000 can qualify for the electric car grant if the base model is under £37,000 with the same battery size (actual government guidance refers to ‘interpolation family’, not battery size, but it usually amounts to the same thing).
Here’s an example of how it works in practice:
Let’s say you’ve got your eye on a standard range Citroen e-C5 Aircross lease which has three trims: You, Plus, and Max. The base You trim costs £34,065 – that’s below £37,000 which means it qualifies for the £1,500 grant, bringing the price down to £32,565.
All three standard range trims have the same battery, with a usable capacity of 73.7 kWh. This allows all trim variants to get £1,500 off as well, as long as the RRP is below £42,000 for each trim.
And guess what, the Plus trim costs £36,705 and the Max trim is £39,345, both below the £42,000 cut-off figure. This means the higher trims also attract the grant, resulting in discounted prices of £35,205 (Plus trim) and £37,845 (Max trim).
We often get asked if leased electric cars also get the grant. The answer is – yes, but it’s slightly more complicated.
The EV grant is automatically applied at the beginning of the process. You don’t have to apply or worry about it in any way. The manufacturer/dealer claims the grant from the government portal and they can then pass any savings on to the customer.
Basically, the grant means the capital cost of the vehicle is lower which can translate into lower monthly lease payments. The discounted pricing works across personal leasing, business leasing, and salary sacrifice schemes.
It’s worth noting that there isn’t always a proportional reduction or increase in the lease payment when there is a reduction or increase in the list price of a car. Top lease deals can secure bigger discounts than just the percentage change in the RRP of the vehicle.
The price of a lease can fluctuate due to a number of different factors, including limited-time offer special batch deals, or the residual value of the vehicle.
Imagine you’re an EV manufacturer and none of your cars in the UK currently qualify for the electric vehicle grant. It puts you in a pickle. Competitor brands that do qualify can sell at a lower cost while maintaining their profit margins.
So what do you do? The answer for many manufacturers is to offer discounts, sometimes heavy discounts. According to The Guardian, manufacturers and dealers are slashing prices by more than 10%, with the average discount close to £6,000.
Although such discounts may not be sustainable for manufacturers in the medium to long term, it’s great news for car buyers and leasers in the short term – everyone likes a lower price.
Here is a selection of cars that currently don’t attract the UK EV grant, but do enjoy a sizeable manufacturer / dealer discount:
Please note: The terms and conditions for vehicle discounts not connected to the Electric Car Grant can be altered at any time and you should always double-check with the manufacturer or dealer what is available at any given time.
In addition to the Electric Car Grant 2026, there are a number of other electric vehicle grants and incentives designed to smooth the way towards electric motoring. Here’s a quick snapshot of the main ones:
• Plug-in Van Grant (PiVG)
• Plug-in Truck Grant (PITrG)
• Plug in Taxi Grant (PiTG)
• Plug-in Motorcycle Grant (PiMG)
• Plug-in Wheelchair Accessible Vehicle Grant (PiWG)
• EV Chargepoint Grant
• Workplace Charging Scheme
For more details, check out our comprehensive guide on EV Grants and Incentives.
On top of all the government grants and incentives, there are also significant tax breaks and city benefits for EV drivers. For example:
Frequently Asked Questions
No. The grant is applied automatically at the point of sale or lease. The dealer or leasing company claims the discount from the government on your behalf, so there is no paperwork for you to complete.
Yes. The grant applies to cars available via personal leasing, business leasing, and salary sacrifice schemes. The manufacturer applies for the discount - and then it’s up to them to reflect that saving in the leasing prices being offered.
No. The Electric Car Grant is only available on brand-new vehicles. Used electric cars are not eligible, regardless of age or mileage.
No. Only vehicles with zero tailpipe emissions qualify. Plug-in hybrids (PHEVs) produce CO₂ when running on petrol or diesel, so they are excluded from the scheme.
If the vehicle’s starting price exceeds £37,000, it is not eligible for the grant. However, if the base model with a particular battery size is priced under £37,000, higher trim levels using the same battery can qualify, up to a maximum of £42,000.
The scheme is funded until 31 March 2030. However, it may close earlier if the £1.3 billion budget is exhausted. The government has stated it can amend or end the scheme without notice if funds run out.
No. You cannot receive both the official government grant and a separate manufacturer discount on the same vehicle. However, if a car is not eligible for the government grant, you may still benefit from the manufacturer’s own offer instead.
If you do go ahead and lease a plug-in electric vehicle and have off-street parking, you might be eligible for £350 off the installation price of a charger. Read our OZEV Government Electric Car Grant Guide for more details.
Choosing the right home charger for your EV is a bit of a minefield. To make the process as easy as possible, we've teamed up with charging experts Rightcharge who offer a wide range of the latest chargers at great prices.
To support our fantastic electric vehicle lease deals, we have a wide-ranging set of guides to answer all your electric questions. We cover topics like range, charging, how to choose an EV, what are BEVs, PHEVs and HEVs, and much more.
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