UK Government Grants Subsidy to RAC for Electric Vehicles
UK Government Launches New Electric Car Grant to Boost EV Adoption
The UK Government has announced a new Electric Car Grant (ECG) worth £650 million, aimed at making electric vehicle (EV) ownership more affordable and accelerating the transition to zero-emission transport. The grant, which launched on 16 July 2025, offers eligible buyers up to £3,750 off the purchase price of a new electric car costing £37,000 or less [1][3].
The ECG is structured into two tiers based on sustainability criteria. The most sustainably manufactured EVs meeting stringent science-based sustainability targets will qualify for a £3,750 discount, while EVs meeting baseline environmental criteria but with lower sustainability credentials will receive a £1,500 discount [1][3]. To qualify for the grant, vehicles must be brand new, zero-emission at the tailpipe, have a battery range of at least 100 miles, include a minimum 8-year battery warranty, and be produced by manufacturers with verified science-based sustainability targets [1][3].
In addition to the ECG, the Government is also introducing initiatives to promote electric vehicles and charging infrastructure. Last week, more funding was announced for pavement gully charging solutions, which will enable those without driveways to charge an electric vehicle at home [2]. The RAC has also launched a faster version of its emergency charger for electric cars to speed up the process for its patrols, which is expected to help insurers and claims handlers [4].
The new Electric Car Grant is a follow-up to the plug-in car grant that ended three years ago. The RAC has been providing emergency charging solutions for electric cars for the past three years [5]. The biggest savings under the new ECG will be given to cars with strong 'green' manufacturing credentials [1].
The ECG funding is available until the financial year 2028/2029, but the scheme could close earlier if funds run out [3]. The grant is applied directly at purchase, reducing upfront costs and helping drivers save on running costs by encouraging EV adoption [1][3]. The new Electric Car Grant aims to provide cars that are not only cheaper for drivers but also better for the environment.
These initiatives are expected to result in more drivers benefiting from the lower costs of running an electric car, making the transition to zero-emission transport more accessible and affordable for all.
[1] GOV.UK - Electric Car Grant (ECG) [2] GOV.UK - Pavement Gully Charging Solutions Funding [3] BBC News - UK Government Launches New Electric Car Grant [4] RAC - Faster Emergency Charger for Electric Cars [5] RAC - Three Years of Emergency Charging Solutions for Electric Cars
- The new Electric Car Grant, following the plug-in car grant, aims to make electric vehicles more affordable for a broader lifestyle, offering a financial incentive of up to £3,750 for those purchasing eligible electric cars.
- With the introduction of the ECG, motor insurance costs might decrease as more people adopt electric-vehicles, leading to a rise in zero-emission transport and a more sustainable society.
- As for the future, the UK Government has demonstrated its commitment to promoting technology in transportation, not only through grants but also by supporting initiatives such as pavement gully charging solutions and faster emergency charging for electric cars.
