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

Heard about the Electric Car Grant but not sure what the latest is? 

Good news: the UK government has made going electric even easier. Whether you’re buying, leasing, or getting your EV through a salary sacrifice scheme, you could get a chunk knocked off the price, making the switch to electric a lot less scary for your wallet.

Here’s what’s available:

• Money off the price: New electric cars priced at £37,000 or less can qualify for a discount of up to £3,750 at the point of order. And that applies whether you buy the car outright or get it on salary sacrifice.
• Two levels of discount: There are two bands of grant: a full £3,750 discount for cars that meet the highest sustainability criteria, and a £1,500 discount for other eligible models that meet minimum environmental standards.
• New cars only: The grant currently applies to brand-new electric vehicles. Used cars are not eligible under the current grant rules. 

Because eligibility depends on specific sustainability measures and pricing criteria, not every electric car will qualify for the grant yet. Government lists of eligible models continue to be updated as manufacturers apply and cars are assessed. 

We’ll tag eligible cars on our site as soon as we know they qualify, so you can see what’s included.

Here’s what you need to know:

• There will be a discount of between £1,500 and £3,750 on eligible 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 11th August, and will be applied when we know which cars are eligible. We don't yet know all of the details on which cars will be eligible but you'll see the cars that are eligible tagged as such on our website.
• 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.
• Car manufacturers must apply for their cars to be eligible, some are starting to be confirmed as eligible and you'll see them tagged as such on our website.

The Electric Car Grant is part of a bigger UK push towards cleaner, greener transport. Alongside plans like the Zero Emission Vehicle (ZEV) mandate, which will phase out new petrol and diesel cars by 2030, and investments in charging infrastructure, the grant is designed to make going electric more affordable.

By lowering the upfront cost of a new EV, more drivers can make the switch and enjoy the ongoing savings that come with it. On average, EV drivers save around £5,850 by making the switch (and that rises to £7,785 for new EVs).

The Government’s also putting money into EV charging points, including £63 million to support drivers who don’t have a driveway or who regularly rely on public chargers. That means more confidence that you can keep your car moving, wherever your commute or adventures take you.

We’re excited that the government is backing electric cars, and we’re here to make the switch even simpler. We’re doing that by offering:

• A big range of cars: We’ve got dozens of electric cars available on salary sacrifice. That includes plenty priced at or under £37,000 so you can take advantage of the Electric Car Grant.
• Simple EV packages from Octopus: Get your car, home charger, and green energy all in one place, making the switch to electric as straightforward as possible.
• Discounted green home energy: Charge at home for under 3p per mile using cheaper, greener energy from Octopus Energy. Drivers on our scheme get an exclusive rate of 10.5p per kWh (reducing to 7p/kWh from 01/04/26) with Intelligent Octopus Go.
• Public charging made simple: With Octopus Electroverse, you can access hundreds of thousands of public chargers across the UK and Europe with a single tap, keeping your EV journey easy and convenient.

Got questions about the Electric Car Grant and how it works with salary sacrifice? You’re not alone. Here’s what you need to know in plain English:

Can I get the discount if I lease my car?

Yes! The government has confirmed the grant applies whether you lease the car or buy it outright, so leasing won’t exclude you from the discount. Even better, it’s applied automatically, so you don’t have to do anything.

Are salary sacrifice cars included?

Yes. You can get the Electric Car Grant in addition to the tax savings you get from salary sacrifice. That means you can benefit from lower BiK tax and the direct upfront price discount. Exactly how much you save will depend on your individual situation, but the two benefits stack together nicely.

Which cars will the discount be available on? 

The grant applies to new electric cars priced at £37,000 or less. There are different bands of discount: some models can qualify for up to £3,750, and others for £1,500, depending on how sustainable they are to produce. Not every EV on the market will qualify yet, because manufacturers need to apply and meet the government’s criteria. We’ll mark eligible cars on our site as soon as we know they qualify.

Why is the government offering this grant?

The aim is to make electric cars more affordable so more people consider making the switch. Electric cars usually cost less to run than petrol or diesel, but upfront prices can still feel high for many people. The grant helps bring that initial cost down, supporting cleaner driving and the UK’s broader climate goals.

When can I get the discount?

The grant can be applied when you order an eligible new EV. If a car becomes eligible after you’ve already placed your order, you’ll usually get contacted to update your quote so the discount can be included.

How long will the discount be available for?

The scheme is funded until March 2030, with funding allocated on a first‑come, first‑served basis. That means timing matters: once the money’s gone, the grant won’t be available in the same way, so it’s worth checking eligibility early.

How do I claim the discount?

When you order a new EV that qualifies, the discount should be applied automatically to your quote. If eligibility is confirmed after you order, you’ll be invited to agree to a revised price.

Can I get the discount on a used EV?

No. The grant only applies to brand‑new electric cars. Used EVs can still be great value, but they don’t qualify for this particular discount.

What if my car has already been delivered?

If your car is already delivered before it meets the eligibility criteria, government rules usually mean the price can’t be changed afterwards. In that case, the discount can’t be applied retrospectively.

However you’re planning to go electric, here’s how to get started:

If your employer already offers EV salary sacrifice: Explore our cars and see how much you could save with the Electric Car Grant.

If your employer doesn’t offer EV salary sacrifice yet: Sign your company up today and make it easier for your team to drive electric.

If you’re looking to lease personally: Check out our available cars and see which qualify for the Electric Car Grant.