After critics questioned the reach of the government’s Electric Car Grant due to the ineligibility of a large number of models, a spokesperson hit back defending the initiative
The UK government has issued a blunt response to criticism over its Electric Car Grant — a scheme cutting the cost of selected models by up to £3,750.
To encourage Brits to make the switchover from internal combustion engine (ICE) to electric vehicles (EVs), the Department for Transport (DfT) announced the £650 million grant, which runs for for three years and can be claimed on any eligible model costing up to £37,000.
The initiative is part of the government’s wider efforts to increase EV uptake, while helping the UK meet environmental targets and close in on its goal of banning the sale of new ICE cars by 2030. It comes after UK drivers were warned over ‘avoiding’ road instead of having to follow new rule.
READ MORE: Anyone buying fuel next week given ‘£15 charge’ warning by AAREAD MORE: Engineers sacked after building £1.6 million right-angle ‘disaster’ bridge
Officially launched on July 16 with the aim of making EVs more affordable for the average UK household, the most environmentally friendly and sustainably produced models qualify for the biggest price reductions. Manufacturers apply for the grant directly, and once their models are approved, customers see the discounts in dealerships.
But the ECG has received mixed reactions from the automotive industry. While an expert from Auto Express welcomed the assistance for motorists switching over to EVs, they also expressed concerns regarding the scheme’s reach.
In a statement sent to the Mirror, head of digital content at the automotive publication, Steve Walker, said: “EV registrations have been growing steadily and are up nearly 35 per cent year on year. But there are two problems.
“First, the rate of uptake still falls below the levels required by the government’s ZEV mandate targets for manufacturers. Second, most of these new registrations are being driven by the fleet sector.
Want big news with big heart? Get the top headlines sent straight to your inbox with our Daily Newsletter
He added: “Around 70 per cent of new EVs cost more than £40,000, yet the new grant of up to £3,750 is only available at the point of sale for cars priced at or under £37,000, meaning most models won’t qualify. And, as of April, EVs priced at £40,000 or more are also no longer exempt from the expensive car ‘road tax’ supplement.”
Since April 2025, owners of EVs with a price tag of £40,000 or more have been required to pay an additional annual £410 in road tax for five years, working out at a total extra cost of £2,050. Auto Express has urged the government to rethink this.
While Steve described the new grant as a ‘welcome boost’, he argued that to really speed up private EV adoption, the government must drop the luxury car tax for EVs while also improving access to charging points — particularly for people without access to home charging.
Responding to the criticism, a Department for Transport spokesperson told the Mirror: “The price cap ensures the Electric Car Grant targets the more affordable end of the market, ensuring funding can reach as many people as possible, rather than spending taxpayer’s money subsidising luxury cars.
“The grant is in addition to the £63 million announced this week to support charging infrastructure, making it cheaper and easier for families, businesses and the public sector to make the switch.”
Do you have a story to share? Email us at [email protected] for a chance to be featured.
