Government support to reduce cost of EVs by up to £3,750

The government has announced a new Electric Car Grant to further accelerate the adoption of electric vehicles, focusing on reducing the cost of lower priced vehicles.

• Drivers could get a discount of between £1,500 and £3,750 on cars priced at or under £37,000.
• The discount is available for drivers looking to lease an EV, or pay for their car through salary sacrifice.
• It’s available on new cars ordered from 16th July, and will be automatically applied when you order.
• Whether the car is eligible, and the level of discount, will depend on the sustainability of the car’s production. This takes into account the energy used to assemble the car and manufacture the battery. The government hasn’t yet shared the specific criteria.

This is very welcome news to those considering making the switch to an electric car. The discount brings down the cost of the car itself, enabling many more drivers to switch. In doing so it gives those drivers access to ongoing savings on running costs of up to £1,500 a year, compared with fuelling a petrol car if they charge at home.

The Electric Car Grant comes alongside the government’s renewed commitment to the Zero Emission Vehicle (ZEV) mandate which will phase out the sale of new petrol and diesel cars by 2030. The government is also investing £63m in EV charging points, giving peace of mind for those who don’t have a driveway, or travel longer than average distances and rely on public charging.

We’re thrilled that the government continues to support the transition to electric driving. Everything we do at Octopus EV helps drivers make the switch to electric by making it cheaper and easier to do so, including;

• Cheaper cars: With over 80 models priced at or under £37,000, the Electric Car Grant will make electric driving even more accessible.
• Simple EV packages from Octopus: By getting your car, charger and home energy all in one place, it couldn’t be easier to make the switch.
• Discounted green home energy: Charge for as little as 2p per mile with cheaper, greener home energy from Octopus Energy. Our drivers get an exclusive home energy rate at 6p per kWh with Intelligent Octopus Go - EV Saver.
• Public charging made simple: Octopus Electroverse gives you one-tap access to hundreds of thousands of chargers across the UK & Europe.
  • We’re now offering our salary sacrifice customers the chance to save up to 40% on public charging through salary sacrifice, making charging on the road much more affordable.

Yes! The government has confirmed the discount is available for customers who lease their car.

Yes! This discount is available in addition to existing savings you’ll make through salary sacrifice. If your employer offers a salary sacrifice scheme, you can already save up to 40% on the cost of an EV by paying through your pre-tax salary. With Octopus EV, that monthly payment includes a home charger, insurance, maintenance, servicing and repairs plus replacement tyres, so the savings just keep coming.

There are currently over 80 brand new electric cars available at or under £37,000. We don’t yet have the full eligibility criteria from the government to show which specific models will be included, but we’ll update this page when we do.

The government is looking to encourage more drivers to make the switch to electric driving, not only to support the UK’s transition to Net Zero, but also to enable people to make savings on running their car.

EV drivers can already save up to £1,500 a year in fuel by making the switch to an EV. This grant helps bring down the up front cost of switching even further, meaning more people can take advantage of those ongoing savings.

The discount is expected to be available on eligible new cars ordered from 16th July, but we expect it may take a bit longer for car manufacturers to figure out their pricing and grant levels.

The scheme will run for three years, with £650m total investment available. The government expects it to help give thousands more drivers access to electric cars. The funding is available on a first come, first served basis so check out the cars available today.

You don’t need to do anything extra. You’ll automatically get the discount if the car you’re ordering is eligible. Just ask our EV Experts if you’re not sure whether your car is eligible for the discount.

The discount is only available on new cars. Many used EVs are available at great prices too. We can help you weigh up your options to see whether a used EV or a new one is best for you.

We’re waiting for confirmation on which cars are eligible for the Electric Car Grant. If you’ve already ordered your car with us, we’ll be in touch if your car is eligible for the Electric Car Grant.

We’re waiting for confirmation on which cars are eligible for the Electric Car Grant. If you’re about to order your car with us, go ahead and we’ll be in touch if your car is eligible for the Electric Car Grant.

If your car’s already been delivered, under government rules, we won’t be able to revise your pricing. We know that might be disappointing, so if your car was delivered in the last month please do reach out and we’ll send over a gesture of goodwill.