4 days ago
First 4 electric cars to qualify for £1,500 grant under government scheme revealed
The electric cars approved for a discount under a new taxpayer-funded drive to accelerate the switch to EVs are all from French carmaker Citroën
Drivers keen to embrace eco-friendly motoring are being handed a £1,500 incentive through a government initiative aimed at slashing electric vehicle prices. Four electric models from French manufacturer Citroën have become the first to receive approval for the discount under a fresh taxpayer-backed campaign to speed up the transition to EVs.
The vehicles – the e-C3, e–C4, e-C5 Aircross and the e-Berlingo – will be available with the grant automatically deducted from this week, eliminating any administrative burden for buyers seeking the reduction. The £650million Electric Car Grant (ECG) forms part of a broader £4.5billion governmental blueprint to tackle emissions, lower driving expenses and strengthen UK manufacturing.
It's also crafted to assist car manufacturers in countering worldwide economic challenges by boosting electric vehicle sales. Transport Secretary Heidi Alexander declared: "With the first four models approved today and more to come over the next few weeks, this summer we're making owning an electric car cheaper, easier and a reality for thousands more people across the UK.
"Once again we're delivering our Plan for Change by standing firmly on the side of motorists and manufacturers, driving down costs for consumers, supporting jobs and putting money back in people's pockets."
The initiative arrives as officials seek to reignite enthusiasm for battery-powered cars following a recent decline in appetite, primarily attributed to steep initial prices and inconsistent charging networks. Under the scheme, electric vehicles (EVs) priced under £37,500 that utilise Chinese-made batteries will be eligible for a £1,500 grant.
Meanwhile, models without Chinese batteries can qualify for a larger £3,750 discount. More qualifying vehicles are anticipated to be announced in the upcoming weeks. Greg Taylor, Citroën UK's managing director, expressed his approval of the move: "We are delighted to be the first to have our electric range... approved and eligible. At Citroën we want everyone to have the opportunity to make the switch to an electric car and this support will help make our cars more accessible for our customers."
The RAC also supported the policy, stating it would alleviate the cost barrier for drivers considering going electric. Simon Williams, RAC head of policy, commented: "It's great to see the first qualifying models announced for the government's new Electric Car Grant. Not only does this mean more drivers will benefit from the lower cost of running an electric vehicle, but it's hopefully the sign of more to come from other manufacturers in the weeks ahead."
Data suggests the savings could extend far beyond the showroom price. Drivers who transition from petrol or diesel to electric could save up to £1,500 annually in fuel and running costs.
To facilitate the rollout, over 17,300 new public chargepoints have been installed since last summer – a 27 per cent increase – bringing the UK total to more than 82,000. The government asserts a new charger is being installed every half an hour.
A new £63million scheme has been unveiled to facilitate home charging for electric vehicles (EVs), even for those without a driveway. This could make running an EV as cheap as 2p per mile, equating to a mere £2.50 for a journey from London to Birmingham.
This Electric Car Grant is part of a series of motoring initiatives aimed at reducing driving costs, including a £1.6billion investment in pothole repairs and a fuel duty freeze until spring 2026, which is expected to save drivers an average of £59 annually.
The ECG is part of a broader effort to position Britain at the forefront of the electric revolution. In 2024, the UK was Europe's largest EV market, with sales increasing by 20 per cent compared to the previous year.
The initiative is also linked to the Zero Emission Vehicle (ZEV) Mandate, which obliges manufacturers to gradually boost their EV sales. Ministers have stated that recent amendments to the regulations will provide the industry with "the certainty, stability and support they've been asking for".
The grants are set to continue until 2028-29, with more models expected to qualify in the near future as manufacturers submit their vehicles for approval.
