Brits offered £3,750 to switchover to EVs but experts warn of huge catch
Brits could get thousands knocked off the price of a new car if they switch over to an electric vehicle (EV) thanks to a major new investment.
In an effort to encourage drivers to make the switchover from internal combustion engine (ICE) to electric vehicles (EVs), the government is offering grants cutting the cost of selected models by up to £3,750. However, insiders have highlighted a significant shortcoming with the scheme.
The Department for Transport (DfT) has announced a new £650 million grant, which is available for three years and applies to any eligible model with a price tag of up to £37,000 — the most sustainably produced and environmentally friendly models qualify for the largest reductions — with the aim of making EVs more affordable for the average British household. Manufacturers can now apply for this grant, and once their models are approved, buyers will see the discounted price directly at dealerships.
According to the RAC, these discounted vehicles are expected to be available 'within weeks'. The scheme is part of the government's wider efforts to increase EV uptake, helping the UK meet environmental targets and close in on its goal of banning the sale of new ICE cars by 2030.
However, this incentive has prompted mixed reactions from the automotive industry — particularly in terms of its accessibility and effectiveness for ordinary buyers. An expert at Auto Express welcomed the introduction of support for consumers transitioning to EVs, but expressed several 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.
"It's no coincidence that while businesses and company car users have strong tax incentives to purchase and run EVs, the private buyer has had nothing, not since the old plug-in car grant expired in 2022. Therefore, the prospect of new government assistance to help ordinary families afford a new EV and access the running costs savings that an electric car can bring, will be welcomed across the industry."
The ace went on to argue that while any incentive is 'good news', it does not address some of the main barriers to EV uptake. He cited how 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.
He went on to add that, since April this year, owners of EVs costing £40,000 or more have to pay an additional £410 a year in road tax for five years — a total extra cost of £2,050 — which Auto Express has asked the government to reconsider. While Steve said the new grant is a 'welcome boost', he stressed that it's not enough on its own, arguing that to really speed up private EV adoption, the government must drop the luxury car tax for EVs and improve access to charging points, especially for people without 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."
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