Car manufacturers will be able to apply for the Electric Car Grant (ECG) from 16 July 2025 from the Department for Transport, Office for Zero Emission Vehicles as Heidi Alexander unveils her promised incentive for a transition.

The new £650m grant, worth up to £3,750 per car, will be available at the point of sale for new eligible electric cars priced at or under £37,000.

The grant scheme will run from 16 July 2025, with funding available until the 2028 to 2029 financial year.

Simon Williams, RAC head of policy, said: “This is further welcome news following last week’s announcement about more funding for pavement gully charging solutions that will enable those without driveways to charge an EV at home. Together, these initiatives should mean more drivers than ever start benefitting from the lower costs of running an electric car.”

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