How to get £3,750 towards a new electric car
The new Electric Car Grant will apply to electric vehicles (EVs) priced at less than £37,000, with the largest savings reserved for the most environmentally sustainable vehicles.
The move comes three years after the plug-in car grant (PiCG) was wound down under the former Conservative government. At the time, the scheme offered up to £1,500 off a new plug-in vehicle costing less than £32,000.
Here, Telegraph Money explains how the new EV grant works, how much it's worth and which EVs qualify.
How does the new grant work?
The Electric Car Grant is backed by £650m of government funding, and will run until 2028 to 2029.
Car manufacturers will be able to apply for the grant from July 16. Once approved, a discount will automatically be deducted from the purchase price of eligible EVs, and the manufacturer can reclaim this amount from the Treasury.
It means that, unlike the old scheme, buyers won't have to do anything to take advantage of the discount.
The grant forms part of a wider EV strategy, including a separate £63m investment to expand Britain's EV infrastructure. Of that, £25m will support 'cross-pavement technology' to help households without driveways to charge EVs from their home power supply.
How much is the EV grant worth?
Under the EV grant, drivers will be able to claim a discount worth up to £3,750 on a brand new EV. The size of the discount will depend on the vehicle's sustainability criteria.
Although full details have yet to be disclosed by the Government, the greenest vehicles will qualify for the full £3,750 discount. The rest will receive a smaller discount of up to £1,500.
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