The UK still offers several incentives for switching to an electric vehicle, though the picture has changed: EVs now pay vehicle tax, while a new Electric Car Grant cuts the price of some new cars. Here is what is available in 2026. Schemes change often, so check gov.uk before you buy.
Electric Car Grant
The Electric Car Grant gives a discount on eligible new electric cars bought from approved dealers. Cars assessed as Band 1 get up to £3,750 off and Band 2 cars up to £1,500 off. Only cars on the government's approved list qualify, and the scheme is aimed at cars costing £37,000 or less. You do not apply yourself: the dealer takes the grant off the price.
- Up to £3,750 (Band 1) or £1,500 (Band 2) off eligible new cars
- Only government-approved models qualify
- The dealer applies the discount at the point of sale
- Separate grants exist for vans, trucks and wheelchair accessible vehicles
Chargepoint grants
The Workplace Charging Scheme helps businesses, charities and public bodies install chargepoints. It covers up to 75% of the cost, up to £500 per socket for installations completed from 1 April 2026 (£350 before that), up to 40 sockets per applicant. It has been extended for a final year to 31 March 2027. Separate grants help people in flats and rented homes and landlords install home chargepoints; check gov.uk for current eligibility.
Company car tax
Electric company cars carry much lower Benefit-in-Kind (BIK) tax than petrol or diesel cars. The rate is 4% of the car's list price in 2026/27, rising by one percentage point a year to 2027/28 and then more steeply. Combined with salary sacrifice car schemes, this can make an EV company car far cheaper than a petrol equivalent.
Vehicle tax and running costs
Electric cars have paid vehicle excise duty since 1 April 2025. Most pay the standard rate (£200 a year from April 2026), and EVs with a list price over £50,000 also pay the expensive car supplement of £440 a year for five years. The government has also announced a pay-per-mile charge for electric cars from April 2028. Running costs are usually still lower than petrol, especially if you can charge at home on an off-peak tariff.
What happened to the old plug-in car grant?
The original plug-in car grant for private buyers ended in June 2022. The Electric Car Grant, launched in July 2025, is a new scheme that gives a discount on eligible new cars.
Is there still a grant for electric taxis?
The Plug-in Taxi Grant is not currently listed among gov.uk's vehicle grants. If you are a taxi driver, check gov.uk and your licensing authority for any current or local schemes.
- electric vehicle
- EV
- grant
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- UK