The UK Electric Car Grant reduces the price of certain approved new electric cars. You do not claim it after buying: the dealer or manufacturer applies it as a discount in the sale. The current maximums are £3,750 for Band 1 and £1,500 for Band 2, but not every eligible car receives the maximum. Check the live government list for the exact model and band, then confirm the approved configuration and discount with the seller.
What does the Electric Car Grant cover?
The scheme supports approved new electric cars at first registration in England, Wales, Scotland and Northern Ireland. Crown dependencies, including the Isle of Man, Jersey and Guernsey, are excluded. It does not cover every electric car, used cars or cars simply because they are electric.
Under Department for Transport, Office for Zero Emission Vehicles and Vehicle Certification Agency guidance, a car must be an M1 passenger vehicle, emit 0g CO2/km at the tailpipe and offer at least 100 miles of WLTP battery range. The eligibility assessment also covers battery or fuel-cell durability and warranty conditions, and production sustainability. Manufacturers submit vehicles for assessment; buyers should use the current government list of eligible cars to check approvals and bands.
How much is the discount?
The published maximums in the 2026 government guidance are £3,750 for Band 1 and £1,500 for Band 2. These are maximum grant amounts, not a guaranteed discount for every car or cash paid to the buyer. A listed car’s current band and grant should be confirmed against the live list and the seller’s written quote.
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Who can get the grant?
The scheme is tied to the approved vehicle and its qualifying sale, rather than a separate consumer application. If you buy or lease a new car that is currently approved, meets the price rules and is registered in one of the covered UK nations, the seller can apply the grant in the transaction. The dealer or manufacturer claims through the government portal.
Eligibility is not established by model name alone. The government list can change as vehicles are approved or removed, and a particular configuration may matter. Before committing, ask the seller to confirm that the exact car and configuration in your order qualify and that the current grant is being applied.
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How the two price limits work
The scheme has two distinct price tests. The Office for Zero Emission Vehicles’ 2026 portal guidance sets a maximum eligible recommended retail price (RRP) of £37,000. It separately says the purchase price before the grant must not exceed £42,000. The £37,000 threshold is not simply the price on a dealer advert, and the £42,000 cap is not a substitute for the RRP test.
| Test | Limit | What the calculation includes |
|---|---|---|
| Eligible RRP | £37,000 or less | VAT, mandatory manufacturer or dealer extras, the battery cost (including a leased battery), and certain non-standard options affecting battery capacity, drivetrain configuration or maximum net power. Discounts and options that do not affect those powertrain characteristics are excluded from this RRP calculation. (Office for Zero Emission Vehicles portal guidance, updated 1 April 2026.) |
| Purchase price before grant | £42,000 or less | The price the customer would pay without the grant. It includes VAT, mandatory extras, first licence, number plates, battery cost, relevant powertrain options, paint options, add-ons, and manufacturer or dealer discounts and rebates. Delivery fees and the first registration fee are excluded, as are certain ancillary items. Charging cables and chargepoints bought separately at the point of sale are excluded. (Office for Zero Emission Vehicles portal guidance, updated 1 April 2026.) |
Because the two calculations treat some items differently, do not assume that an advertised price or the amount due on a quote settles both tests. Check the current portal guidance and ask the seller to itemise the quote, especially if the car has options, add-ons or discounts.
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How is the grant applied to the purchase price?
The seller applies the grant as a reduction in the purchase price and claims it through the government portal; the buyer does not submit a separate claim. Any dealer or manufacturer discount, including rebates, must be applied before the grant. The invoice should show the relevant components, grant amount and final price, and may be checked in an audit, according to the portal guidance.
Buyer checklist
- Search the live list of eligible cars for the exact model and current grant band.
- Ask the seller to confirm the approved configuration, its eligible RRP and whether the proposed purchase price before the grant meets the separate £42,000 cap.
- Get a written quote that shows dealer or manufacturer discounts and rebates first, followed by the grant deduction.
- Check the final order and invoice identify the qualifying car, grant amount and final price. Confirm the grant amount with the seller before signing, since approvals and scheme rules can change.
What to compare when choosing an eligible car
Grant eligibility is only one part of the purchase decision. When comparing approved cars, check the grant band alongside the exact variant and options, the price after ordinary discounts, and the vehicle’s range and warranty. A grant does not by itself show that one model is better value or a better fit than another.
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