The UK government has reinstated its electric vehicle (EV) grant program in a surprising policy reversal — but with tight restrictions that sharply limit eligibility. Aimed at accelerating the transition to zero-emission vehicles, the revived grant targets lower-cost electric models and excludes many premium and commercial vehicles.
Under the new scheme, buyers of qualifying EVs priced under £25,000 will be eligible for a £3,000 grant, a move designed to make clean transportation more accessible to average consumers. However, the grant is limited to private buyers only, and fleet purchases, leased vehicles, and higher-end models are not covered.
The government says the revised grant program reflects a more targeted approach, ensuring that subsidies benefit those who need them most while supporting the broader net-zero strategy. Officials argue that EV prices are falling, and financial assistance should now be focused on stimulating mass-market adoption.
“We want to put affordable EVs within reach of more drivers,” a spokesperson for the Department for Transport stated. “This updated grant supports working families while encouraging manufacturers to produce more budget-friendly options.”
Industry reaction has been mixed. Some automakers welcomed the support for entry-level EVs, while others criticized the limits as too restrictive, warning that it could stifle innovation and exclude many new technologies from the market.
The previous plug-in car grant was scrapped in 2022, with the government shifting its focus to funding public charging infrastructure. The new version marks a policy recalibration as ministers face pressure to balance climate goals with economic realities, particularly as EV adoption lags in lower-income segments.
Applications for the grant will open in the coming weeks, with funds distributed on a first-come, first-served basis until the allocated budget is exhausted.
