The UK government's Electric Car Grant scheme has been in place for a year now, aiming to encourage the adoption of electric vehicles and reduce greenhouse gas emissions. Launched in July 2025, the scheme offers discounts of up to £3,750 on new electric vehicles, with eligible buyers able to claim £1,500 to £3,750 off the purchase price, depending on the vehicle's price and model. The scheme applies to cars priced under £37,000, making it accessible to a wide range of consumers.
Data from the UK's Office for National Statistics (ONS) shows a significant increase in new car registrations in the year since the scheme's launch. In the 12 months to June 2026, 342,000 new electric vehicles were registered, a 45% increase on the previous year. While this growth is a positive sign, it is unclear whether the Electric Car Grant scheme is solely responsible for the increase.
Industry experts point to a combination of factors contributing to the growth in electric car sales, including declining battery costs, improved charging infrastructure, and increased consumer awareness of the benefits of electric vehicles. However, the Electric Car Grant scheme is likely to have played a significant role, given the significant discounts available to eligible buyers.
The success of the scheme will be closely watched, with the UK government hoping to achieve its goal of having at least half of new car sales be electric by 2028. While the Electric Car Grant scheme is a positive step towards this goal, it remains to be seen whether it will be enough to drive the level of growth required to meet the target.
The UK government has announced plans to review the Electric Car Grant scheme, with a view to making changes to the scheme if necessary. This review is expected to take place in the coming months, with the government set to consider the effectiveness of the scheme and identify areas for improvement.