Labour has already made changes to its Electric Car Grant just weeks after introducing the incentive scheme for drivers across the UK.
The Electric Car Grant was announced in July, with the Government slowly introducing eligible vehicles that could attract a discount.
The £650million grant could help thousands of drivers save £1,500 or £3,750 off the list price of a new electric car that costs less than £37,000.
A handful of popular vehicles are already included in the scheme, including Renault, Vauxhall, Citroen and Ford, most notably the £3,750 grant for the electric version of the most popular car in the UK - the Ford Puma.
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The new £650million Electric Car Grant could help drivers save up to £3,750
| GETTY/PAIn a recent update to the eligibility criteria for the Electric Car Grant, new measures have been introduced to clarify confusion around pricing.
From Friday, August 29, 2025, interpolation family variants of electric vehicles will have a price cap of £42,000.
This means that any vehicle with a purchase price over £42,000 is not eligible for grant support after this date.
When a vehicle model has multiple powertrain options, eligibility will be determined by the recommended retail price (RRP) of the lowest-priced variant of each distinct powertrain.
The Department for Transport gave an example of a vehicle model with a 50kWh battery option priced at £35,000 to £42,000 and a 60kWh battery option priced at £40,000 to £45,000.
Under the new clarifications, all 50Kwh battery variants would be eligible. However, none of the 60kWh battery variants will be eligible, as the 60kWh version's starting price is above £37,000.
For the purposes of the grant, the definition of RRP excludes any non-standard option fitted by the manufacturer or dealer which does not affect the capacity of the battery, drivetrain configuration or maximum net power.
Warranties, excluding the mandatory cover identified in the ECG guidance, insurance and service packages, or other similar products, and the first registration fee and cost of the first licence are also excluded.
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The Ford Puma Gen-E is one of two Ford models eligible for the £3,750 ECG incentive | FORDLabour will continue to make vehicles eligible for the grant in the coming weeks as "manufacturers' applications are assessed against the scheme’s sustainability standards".
It is expected that Chinese brands will not be included in the grant scheme as many of the production factories still rely on coal, meaning they fall short of the Government's environmental goals.
Transport Secretary Heidi Alexander said the Government was committed to bringing savings to motorists by delivering the first discounts of up to £3,750.
The Ford Puma Gen-E is expected to see the price fall to a staggering £24,745. This not only makes it affordable for millions of drivers, but also cheaper than the hybrid equivalent.
The Ford e-Tourneo Courier is eligible for the £3,750 EV grant
|FORD
Eligible EVs for the £3,750 Electric Car Grant
- Ford Puma Gen-E
- Ford e-Tourneo Courier
Eligible EVs for the £1,500 Electric Car Grant
- Citroen e-C3
- Citroen e-C3 Aircross
- Citroen e-C4
- Citroen e-C4 X
- Citroen e-C5 Aircross
- Citroen e-Berlingo
- Cupra Born
- DS DS3
- DS Nº4
- Nissan Ariya
- Nissan Micra
- Peugeot e-208
- Peugeot e-308
- Peugeot e-408
- Peugeot e-2008
- Peugeot E-Rifter
- Renault Alpine A290
- Renault Megane
- Renault Scenic
- Renault 4
- Renault 5
- Vauxhall Astra Electric
- Vauxhall Combo Life Electric
- Vauxhall Corsa Electric
- Vauxhall Frontera Electric
- Vauxhall Grandland Electric
- Vauxhall Mokka Electric
- Volkswagen ID.3