The Return of UK Government EV Grants
What It Means for You
Published: July 2025
In a significant move to accelerate the transition to cleaner transportation, the UK Government has announced the return of electric vehicle (EV) grants – a welcome development for consumers, businesses, and the environment alike.
After the plug-in car grant was controversially scrapped in June 2022, many believed that government-backed financial support for EVs was a thing of the past. But amid growing concerns over net zero targets, EV adoption rates plateauing, and cost-of-living pressures, the government has decided to reintroduce a new package of incentives aimed at boosting EV uptake across the country.
So, what’s on offer, who qualifies, and why now?
What Are the New EV Grants?
While full details are expected to roll out over the coming weeks, here’s what we know so far:
- New Plug-In Car Grant – A reinstated grant is now available for qualifying fully electric vehicles priced under £35,000. Early indicators suggest a support figure of up to £3,000 per vehicle, targeting mass-market EVs rather than premium models.
- Enhanced Support for Business Fleets – SMEs and fleet buyers can access additional funding, with grants of up to £5,000 per vehicle for eligible businesses transitioning to electric vans or cars.
- Charging Infrastructure Grants – Homeowners, landlords, and businesses will benefit from renewed support for EV charger installations, including:
- Expanded Workplace Charging Scheme coverage
- New support for community and apartment block installations and road side charging for terraced housing
Why Now?
The reintroduction of EV grants comes as part of a wider strategy to revive momentum in the electric vehicle sector. Despite early enthusiasm, 2024 saw a slowdown in consumer EV adoption – largely due to:
- High upfront costs compared to petrol/diesel alternatives
- Delays in charging infrastructure rollout
- The removal of financial incentives in previous years
At the same time, the UK remains legally bound to ambitious environmental targets, including the 2035 phase-out date for new petrol and diesel car sales. Bringing grants back is a pragmatic response: it lowers the financial barrier for drivers and businesses, helps stimulate demand, and supports the EV industry at a critical time.
What This Means for You
Whether you’re considering your first EV or thinking about upgrading, the new grants could save you thousands and bring your electric ambitions within reach.
- Private Buyers: With up to £3,750 off eligible EVs, it’s worth revisiting models that may have been just outside your budget a few months ago. Leasing companies are already responding with improved rates.
- Business Users: Company car drivers continue to enjoy low Benefit in Kind (BiK) rates on EVs, and now, thanks to the reintroduced fleet incentives, businesses have even more reason to go green.
- Existing EV Owners: Increased investment in public charging infrastructure is part of the package too, meaning improved convenience and access as demand continues to grow.
Looking Ahead
With competition between manufacturers heating up and the return of financial support from the government, 2025 could be a tipping point for EV adoption in the UK.
For drivers, the message is clear: if you’ve been holding off on making the switch, now could be the perfect time to plug in.
Need help navigating the new EV grants or want to explore leasing options on electric vehicles? Get in touch with our expert team today. We’ll guide you through the latest offers, help you secure grant eligibility, and make your transition to electric easy and affordable.
