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Andrew Leech
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A Familiar Feeling: The Return of EV Grants
Remember the days before Zoom fatigue and socially distanced everything? When electric cars came with generous government support, Benefit-in-Kind tax was 0%, and going green just made sense?
Well, good news – electric car grants are making a comeback. Sort of.
The UK Government has just announced new EV grants of up to £3,500 for selected electric vehicles. It’s not quite a return to the golden days, but it’s a clear step in the right direction. Here’s everything we know so far and what it means for you.
So, What Are These New Electric Car Grants?
The government’s newly announced EV grant scheme will provide:
Grants of up to £3,500 off the list price of eligible electric cars
A clear focus on low-cost, low-emission vehicles
Support aimed at helping more people make the switch to electric
That’s the headline. But as always, the detail matters – and in this case, there’s a fair bit to unpack.
Who’s Eligible for the EV Grant?
Here’s how the scheme works, as far as we know right now:
1. Only Cars Below £37,000 Qualify
This cap means the grant is restricted to entry-level or lower-mid-range EVs. Anything over £37k? No discount.
That rules out many popular electric cars, but it does open the door for new buyers considering affordable options like the MG4, Vauxhall Corsa Electric or Fiat 500e.
2. Manufacturers Must Apply for Approval
The grant won’t automatically apply to all cars under the price cap. To qualify:
Manufacturers must apply for inclusion
They must show low carbon emissions during production
Only cars meeting both criteria will qualify
That means some EVs might get the full £3,500, others just £1,500, and some none at all – even if they’re under £37,000.
Employers Introducing the Scheme
Employees Going Green
What Should Drivers Do Now?
If you’re in the middle of choosing your next electric car, especially through salary sacrifice, you might be wondering whether to pause or proceed. Here’s our take.
If Your Car Is Over £37,000
Carry on! You won’t qualify for the grant, but salary sacrifice savings are already so strong, you’re still making a huge financial win.
If Your Car Is Under £37,000
You’ve got two smart options:
Order now and lock in existing savings through salary sacrifice
Hold off briefly to see if your preferred model gets added to the approved list
And remember – if you want to wait but still need a car, our pre-owned EV options offer a great solution for six months or more.
Want to see what cars might be eligible for the grant? Have a browse on the quote engine below! (Remember to get a personalised login if you haven’t already!)
A Step in the Right Direction – But Not Perfect
We’re pleased to see a renewed focus on EV adoption, but there’s no ignoring the elephant in the room: charging access.
For people with driveways or home chargers, EV life is smooth and easy. But for drivers living in flats or homes without off-street parking, street charging is still a major barrier. We’d have liked to see this funding directed toward charging infrastructure, making electric vehicles more accessible for everyone, not just early adopters with driveways.
Still, we’ll take progress where we can get it. After years of changing incentives and policy U-turns, this shows real intent from the government to support sustainable transport. And with the ongoing benefits of salary sacrifice still standing strong, now is still one of the best times to switch to electric.
Your Next Step? Get Ahead of the Game
Not sure whether to wait or go ahead? We’re here to help. Our team can guide you through the latest offers, grant eligibility and salary sacrifice savings so you don’t miss out.
Get in Touch
Fleet Evolution offers innovative salary sacrifice schemes, helping employers and employees save on costs while promoting eco-friendly electric cars. Enjoy easy setup, free maintenance, and swift activation for any company size.
FAQs
What are EV grants and how do they work?
Which electric cars qualify for the new grant?
Can I combine the EV grant with salary sacrifice?
