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The UK government has announced a new £650 million Electric Car Grant (ECG) scheme designed to make electric vehicles (EVs) more affordable for consumers.
Transport Secretary Heidi Alexander confirmed that the grant will offer discounts of up to £3,750 on eligible new electric car models, to reduce upfront costs for thousands of drivers across the UK.
The initiative, which supports the government’s commitment to phase out new petrol and diesel car sales by 2030, will provide funding until the 2028/29 financial year. Discounts will be available at the point of sale for new eligible electric cars priced at or under £37,000. Manufacturers can begin applying for their zero-emission cars to be part of the scheme from July 16, with benefits reaching drivers shortly thereafter.
“This EV grant will not only allow people to keep more of their hard-earned money – it’ll help our automotive sector seize one of the biggest opportunities of the 21st century,” says Transport Secretary Heidi Alexander.
She also highlighted the expanding charging infrastructure, stating, “with over 82,000 public chargepoints now available across the UK, we’ve built the infrastructure families need to make the switch with confidence.”
The grant aims to narrow the initial cost difference between petrol and electric vehicles, potentially saving drivers up to £1,500 annually in fuel and running costs.
Says Simon Williams, Head of Policy at RAC: “Within weeks, discounted cars should start appearing at dealerships across the country. And, as the biggest savings will be given to cars with the strongest ‘green’ manufacturing credentials, drivers will be picking models that are not only better for their wallets, but better for the planet too.”
Vicky Read, CEO of ChargeUK, also welcomed the news, stating:
“This announcement is brilliant news – for drivers and for the UK’s transition to electric vehicles.”
She added, “With a commitment to invest £6bn through to 2030, the UK’s charging industry has rolled out infrastructure ahead of demand to ensure that when drivers switch the network is there to make charging as convenient as possible.”
This new grant follows a recent £63 million government package to support home charging for households without driveways, accelerate the transition of NHS fleets to electric, and establish thousands of chargepoints at business depots nationwide. In total, the government is investing £4.5 billion to drive the shift to EVs.
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