UK Reintroduces EV Discounts, But with Spending Limit | Carscoops

      A new government incentive is allowing drivers to save significantly on electric vehicles (EVs), but only if they adhere to strict price regulations and timelines.

      The UK government is reintroducing an EV subsidy program that was discontinued in 2022.

      Discounts will range from £1,500 to £3,750 for new electric vehicles priced at up to £37,000.

      The UK aims to eliminate internal combustion engine (ICE) cars by 2030, which is five years ahead of a similar ban in Europe.

      While the Trump administration might terminate EV tax credits as early as September, the UK, which halted its subsidy program three years ago, is now reversing its stance to offer new support for buyers. The British government is reinstating financial assistance to enhance the appeal of electric cars.

      UK car buyers will soon qualify for discounts of up to 10 percent on new EVs that cost no more than £37,000 ($49,700). The specific details of the grant are yet to be announced by the British Labour government, but discounts are expected to be between £1,500 ($2,000) and £3,750 ($5,000), depending on the vehicle's environmental impact.

      Supported by a Three-Year Investment Plan

      This new initiative will last for three years and will be funded by a £650 million ($874 million) budget. Additionally, the government plans to invest £63 million ($85 million) in EV charging stations to address one of the primary concerns that potential buyers have regarding the switch to electric vehicles, aside from the higher costs compared to combustion engine vehicles, according to BBC News.

      In the UK, vehicles generally have higher prices than in the US, making the £37,000 cap unsuitable for many relatively standard EVs. While compact cars such as the Dacia Spring, Renault 5, Vauxhall Frontera Electric, and Kia EV3 will qualify for the grant, even the entry-level Hyundai Ioniq 5 and Tesla Model 3 exceed the price limit. However, the government asserts that 33 EVs currently on the market are priced at £30,000 ($40,000) or less.

      A Revisited Proven Strategy

      The UK's original EV grant, which provided discounts of up to £7,500 ($10,000), significantly boosted electric vehicle sales. It was so effective that the Conservative government discontinued it in 2022, believing it had fulfilled its purpose.

      EV sales in the UK are outpacing those in some neighboring European countries, yet they only made up 22 percent of car sales in the first half of 2025, falling short of the government’s 28 percent target, as reported by Bloomberg. The UK has committed to phasing out combustion vehicles by 2030, but it appears unprepared for that transition.

      Automakers, who have struggled to meet the EV sales targets imposed by the government and, in some cases, have been limiting the sales of combustion models to avoid penalties, will likely welcome news of the grant program. It is predicted that some manufacturers will adjust their vehicle lineups to make certain EVs that currently exceed £37,000 fall below that threshold.