Labour slammed for 'messy' rollout of Electric Car Grant incentives as drivers yet to see £3,750 discount

WATCH: Roads Minister Lilian Greenwood speaks to GB News about the new Electric Car Grant

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GB NEWS

Felix Reeves

By Felix Reeves


Published: 26/08/2025

- 15:54

More than 20 models are eligible for the £1,500 Electric Car Grant discount

Experts have taken aim at the new Electric Car Grant amid fears that slow decisions from Labour could hamper drivers' intentions to buy a new vehicle.

Labour launched its £650million Electric Car Grant in July to help drivers save up to £3,750 off the price of a new electric vehicle priced at £37,000 or less.


Popular brands, including VW, Vauxhall, Nissan and Peugeot, have already been included in the incentive scheme, with Labour continuing to include more vehicles in the scheme.

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In total, more than 20 models have been included in the ECG, with variants also eligible for the £3,750 discount, although the Government has only made vehicles available for the £1,500 grant so far.

Electric car charging and an EV charger

Experts have criticised Labour's Electric Car Grant over claims the rollout has been 'messy'

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GETTY/PA

Experts have warned that the delays to the inclusion of more vehicles in the Electric Car Grant could impact the sales decisions of motorists looking for a new model.

Mike Thompson, chief operating officer at Leasing Options, described the rollout of the scheme as "messy", adding that there was a lack of clear eligibility criteria.

He warned that this could be causing many drivers to delay their purchase of a new electric car, calling it "disappointing" that organisational issues and a lack of clarity have impacted motorists.

Labour's "science based targets" are included in the scheme, with Chinese brands likely to be omitted from the list of eligible electric vehicles.

READ MORE: Motorists can save £1,500 on popular electric cars from Vauxhall, Nissan and more with new grant - all eligible models

Future of Roads Minister Lilian Greenwood admitted that most Chinese brands would not qualify for the grant, since many factories still rely on coal for power.

The Labour MP for Nottingham South said it would be counter-productive for these manufacturers to benefit as they were still emitting high levels of CO2 along the supply chain.

In response to the Electric Car Grant and its slow rollout, some manufacturers have introduced grants of their own or offered alternative incentives to motorists.

One of the most popular Chinese brands, BYD, said it would be extending its power battery warranty to eight years and 200,000km, as well as five years of free servicing on its electric vehicles.

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Mr Thompson continued, saying: "Since then, the Government has been drip-feeding eligible models. Yet despite the fanfare, as of mid-August, not a single EV has qualified for the full £3,750 grant.

"We expect the next two models to appear on the £3,750 discount list will be the Nissan Leaf and the Citroen e-C5 Aircross, although neither is currently on the UK market."

There are hopes that September will see a spike in new registrations of electric vehicles as the month typically results in a boost in interest for new cars as new number plates are released.

From Monday, September 1, the new "75" registration plate identifier will be released, with the new tag adorning the latest models on forecourts and in dealerships.

The Renault 5 E-Tech is one of the eligible models as part of the Government's Electric Car Grant

The Renault 5 E-Tech is one of the eligible models as part of the Government's Electric Car Grant

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RENAULT

All new EVs eligible for the £1,500 Electric Car Grant

  • Citroen e-Berlingo
  • Citroen e-C3
  • Citroen e-C4
  • Citroen e-C5
  • Cupra Born
  • Nissan Ariya
  • Nissan Micra
  • Peugeot e-208
  • 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