Motorists to see costs of electric cars slashed as new grant offers lifeline to millions - 'Biggest savings'

It comes after Labour has reinstated the Electric Car Grant, which will help slash the prices of new electric vehicles costing £37,000 or less in a bid to make EVs more accessible for drivers.

Transport Secretary Heidi Alexander unveiled the scheme as part of the Government's Plan for Change, aimed at supporting the transition to cleaner transport.

Do you have a story you'd like to share? Get in touch by emailing motoring@gbnews.uk

The initiative follows the Government's reinforced plan to phase out sales of new petrol and diesel cars by 2030 under the Zero Emission Vehicle mandate. The mandate requires at least 28 per cent of new car sales to be electric by the end of the year, before moving to 100 per cent in 2035.

While progress has been made in boosting the uptake of electric vehicles, some drivers remain hesitant to switch, citing higher prices and a lack of faith in the charging infrastructure.

Under the new measures, manufacturers can apply for the scheme from July 16, with funding allocated on a "first-come, first-served basis" until the 2028/29 financial year.

The grants will be available at the point of sale, with no additional paperwork required from consumers as all administration is handled between manufacturers, dealerships and the Government.

READ MORE: Electric car owners to save £1,500 every year with new support for 'innovative' home charging scheme

Discounts will be based on sustainability criteria, with the greenest vehicles in band one receiving up to £3,750 and band two vehicles receiving up to £1,500.

To qualify, manufacturers must have committed to a verified Science-Based Target and meet specific embodied carbon thresholds, the Department for Transport detailed.

It said that the digital system for manufacturers to log eligible vehicle sales will open on August 11, with grants expected to be offered to consumers as soon as applications are approved.

Alexander said: "We are making it easier and cheaper to own an electric car. This 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."

LATEST DEVELOPMENTS:

• Drivers at risk of penalties and police charges as major fraud practice causes 'nightmare' for thousands
• M6 chaos: Motorists warned of hours of delays on major motorway as road collision causes severe problems
• Electric car charging grant will see 'massive savings' for drivers and NHS - 'This is a win-win!'

The Transport Secretary explained that there are currently 82,000 public charge points in place across the UK, which have been helping "build the infrastructure families need to make the switch with confidence".

"This is our Plan for Change in action. We're backing British drivers, British jobs and British growth," she added.

Industry leaders have welcomed the announcement, with RAC head of policy Simon Williams saying discounted cars should start appearing at dealerships "within weeks".

"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," he stated.

John Lewis, CEO of char.gy, said the move brings the UK "closer to a future where driving electric is accessible to everyone, not just the privileged few".

Quentin Willson, Founder of FairCharge, added: "Having long campaigned for charging signs on our roads, I’m overjoyed to see that finally non-EV drivers will see that there is a charging infrastructure to give them the confidence to switch.

"Years of not having any charging signage on our roads have helped stoke the myth ‘there’s no infrastructure’. This is a very welcome development."

The grants mark the return of electric car incentives after they were scrapped by the Conservative Government in June 2022.