£1.3 billion more funding to extend electric car grant

Chancellor Rachel Reeves has announced a £1.3 billion additional funding for the electric car grant - extending it to 2030.

Announced in the 2025 Budget, this takes the total funding for the grant to £2 billion.

The electric car grant was announced in July and gives discounts of up to £3,750 at the point of sale for new eligible electric cars priced at or under £37,000.

The grant level is £1,500 or £3,750 depending on the vehicle's environmental score.

The government recently announced there are 39 models of electric vehicles eligible for the Electric Car Grant. 

But there only four models that are eligible for the higher grant level of £3,750. These are the Citroën ë-C5 Aircross Long Range; Ford E-Tourneo Courier; Ford Puma Gen-E; and Nissan LEAF.

The government says that over 35,000 drivers have already used the grant to make the switch since it launched in July.

Chancellor Rachel Reeves also announced a further £200m to accelerate the rollout EV charging in the Budget.

Paul Hollick, chair, Association of Fleet Professionals, said: "It is welcome that electric car grant funding has been increased quite substantially, a measure presumably designed to counter any fall in EV demand caused by road charging. While this scheme is perhaps more directly relevant to retail rather than fleet customers, it’s a positive for everyone if the EV market receives any kind of boost."