The UK government has launched the Electric Car Grant (ECG), offering drivers and businesses up to £3,750 off the cost of a new electric car. Starting 16 July 2025, the grant aims to make EVs more accessible and support the transition to zero-emission transport.
How It Works
The ECG applies to brand-new, fully electric cars under £37,000. The discount is automatically applied at the point of purchase or lease by participating dealers and brokers — no application needed.
There are two grant levels:
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£3,750 for EVs in Band One (cleanest manufacturing process)
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£1,500 for EVs in Band Two
Who’s Eligible?
To qualify, the EV must:
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Be fully electric (not hybrid)
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Cost £37,000 or less
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Be built by a manufacturer with a verified Science-Based Target for emissions
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Appear on the official OZEV approved list
Both private and business customers are eligible.
Extra Support for Businesses
For companies, the ECG adds to existing benefits like:
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3% Benefit in Kind (BiK) tax
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Salary sacrifice schemes
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Reduced running and maintenance costs
Combined, these incentives make electric fleets more affordable than ever.
Charging Investment Included
The ECG is part of a wider £650 million EV support package, which also includes:
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£25 million for home charging on streets
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£30 million for workplace and depot charging (including NHS fleets)
Final Word
The new ECG is a major step in making EVs more affordable and accessible across the UK. At Silverstone Leasing, we’re ready to help you take advantage of this opportunity and find the right electric car with the grant applied.
