27.11.25 |10 min |: Max Cooke

Understanding UK Government support for EVs

While some motorists may cite cost as a reason for being reluctant to purchase an electric vehicle, the price of buying and running an EV may well be less than you think. Charging a medium-sized EV at home can be half the cost of filling up an equivalent petrol car, while sustainability-minded government schemes in the UK aim to help many consumers get value out of going electric.

In this article, we explore the options available and highlight a few recent developments that help build a fuller picture of support for EV buyers.

Electric Car Range

The state of play

At the time of writing in late 2025, several schemes and incentives remain in place, although finding the right one can take a bit of research. Company car tax, for example, is still lower for EVs, although it is expected to rise slightly in 2026. The enticingly named Electric Car Grant, meanwhile, is technically aimed at manufacturers, even if it is great news for consumers.

The latest Autumn Budget added a little more clarity to what the next few years will look like for drivers. A new mileage-based road charge is planned for April 2028, with fully electric cars expected to pay three pence per mile and plug-in hybrids one and a half pence per mile. This sits alongside earlier changes to Vehicle Excise Duty and helps build a clearer picture of future running costs. The Budget also confirmed continued investment in EV support, including more funding for grants and further backing for the UK’s charging infrastructure.

There are also, as you might imagine, various provisos, stipulations, terms and (obviously) conditions to bear in mind with any relevant grant or scheme. But many can be worthwhile if you are eligible for them.

Keeping up with the different government support available for EVs can feel somewhat overwhelming if you’re not sure where to start. Fortunately, we can help point you in the right direction and get you on the road to hopefully saving some much-needed cash.

“This grant will not only allow people to keep more of their hard-earned money, but it will also help the automotive sector make progress in one of the biggest opportunities of the 21st century.”

Heidi Alexander, Transport Secretary

EV purchase grants

Perhaps the biggest change in recent years was the closure of the Plug-in Car Grant in 2022, which had run for more than a decade. It removed £1,500 from the cost of a new EV priced below £32,000, but was eventually closed to private buyers.

The introduction of the Electric Car Grant in 2025 helped to fill this gap. The grant supports new EVs priced under £37,000. Cars that meet the highest sustainability criteria qualify for a discount of up to £3,750 under Band 1. Those that meet the required core criteria but achieve a slightly lower sustainability score receive a smaller discount under Band 2.

The grant is funded until at least March 2029 or until the allocated budget is used. Importantly, buyers do not apply for the ECG themselves. Retailers apply it automatically at the point of purchase. Eligibility includes zero tailpipe emissions, a minimum zero-emission WLTP range of 100 miles, and an 8-year or 100,000-mile battery and drivetrain warranty. Sustainability scoring and a manufacturer-verified Science Based Target also apply.

Although no current Honda vehicles fall within the eligibility parameters for the ECG, Honda continues to offer support such as a £5,000 Honda Deposit Contribution on e:Ny1 purchases alongside the 'Honda EV Grant,' giving buyers £3,750 off through Honda Personal Contract Purchase or Honda Hire Purchase.

View e:Ny1 Offers

Electric car charger grants

Outside of vehicle costs, another common EV ownership concern is charging equipment. A 2023 IPSOS study highlighted this issue, noting that 39% of people would buy an EV “if they could charge it at home”. This rose to a considerable 54% in London.

The barrier to entry is less than you may think. A standard 7kw charger typically costs between £800-£1,200, with a rough 5-12% extra cost for labour. The OZEV (Office for Zero Emission Vehicles) Grant is limited to renters, landlords, and those who live in a flat with private parking, but it still provides many with possibilities.

The EV Chargepoint Grant knocks off £350 or 75% (whichever is lower) for buying and installing an EV Chargepoint socket. You’ll need to meet certain eligibility criteria: private off-street parking, an improved installer and an OZEV-approved vehicle.

e:Ny1 Overview CR-V e:PHEV Overview

How to apply for EV charger grants?

Applying for an EV charger grant is pretty straightforward. Head to the GOV.UK portal to get started. If you’re a renter, you’ll need to provide proof of tenancy, and if you’re a landlord, you’ll need proof of ownership. And don’t forget, you’ll need to have your installation carried out by an OZEV-approved installer.

Electric car road tax (Vehicle Excise Duty)

Historically, EVs were subject to a lower rate of tax on account of their low emissions. However, as more drivers turn to EVs, they’ll now find themselves paying a standard rate.

Prior to April 2025, EVs were exempt from the Vehicle Excise Duty (VED) in the UK, though EVs are under the standard VED scheme from now on. The good news is, for most EV owners, the bill will total only £195 per year, with an additional tax of £10 for cars registered after April 1^st 2025.

For businesses, the Benefit-in-Kind (BIK) company car tax – which an employee must pay for their company car, based on its fuel type, emissions, and income tax bracket – has historically favoured EVs with lower rates. That said, the 1% rate we saw in 2021 has gradually increased since, and is up to 3% today.

Vehicle scrappage schemes

Vehicle scrappage schemes incentivise replacing an older, more polluting car with an EV alternative. And while there are currently no national schemes, there are some localised initiatives around the UK.

· Scotland. People living in or near major Scottish cities such as Edinburgh, Glasgow, Dundee or Aberdeen can apply for the Low Emission Zone Support Fund for help to move to a compliant vehicle.

· Bristol. There is a range of grants and contributions available for regular drivers in the Bristol Clean Air Zone – with up to £2,000 for eligible cars.

There have also been schemes in London, Birmingham and Oxford over recent years, though the London ULEZ scheme that offered Londoners up to £2,000 to scrap non-compliant cars has now ended.

Lower congestion charges

In London, fully electric and hydrogen fuel-cell vehicles can claim a handy Cleaner Vehicle Discount (CVD), offering 100% exemption from the Congestion Charge (you just have to pay a £10 annual registration fee). This will last until 25 December 2025 – so get your applications in.

From January 2026, in London, a new tiered system is set to come into place – offering discounts, but not exemptions, for electric vehicles. Under the new proposals, vans and commercial vehicles are in line to pick up a 50% discount, while car drivers registered with autopay will pick up a 25% reduction. Find out more about the scheme on TFL.

2035 ban on new petrol and diesel cars

In 2017, Theresa May’s government announced a ban on the manufacture of new petrol and diesel vehicles by 2040, as part of the Conservatives’ Road to Net Zero initiative. The ban was brought forward 10 years by Boris Johnson during his tenure, a few years later, before being moved back again to 2035 by Rishi Sunak.

The current scheme is to continue the ban on new vehicles with internal combustion engines by 2030. New hybrid cars, however, will have an additional five years on our forecourts. Of course, roadworthy existing vehicles may continue in use.

Discover your Honda Electric Vehicle

So there you have it, a roundup of the most common EV grants in the UK today. Even if you don’t qualify for one of the government grants, why not take advantage of the great 0% offer available on the all-electric e:Ny1, or take a look at the exciting new compact EV, the Super-N, which is launching in the UK only in 2026.

FAQs

Does the UK still have a grant for electric cars?

The UK ended its Plug-in Car Grant for new EVs in June 2022. However, a new 2025 Electric Car Grant is now in place, aimed to incentivise lower manufacturing emissions too. This can knock up to £3,750 off the price of a new EV.

How much road tax will EVs pay from 2025?

From April 2025, electric cars lose their road-tax exemption. Standard VED will be £195 annually (current rate), with new EVs registered after April paying £10 in the first year. Vehicles priced above £40,000 will also be charged a five-year “expensive car supplement” of £425 annually. Rates may change with future Budget announcements.

Can London drivers avoid the Congestion Charge with an EV?

Yes, but only until 25 December 2025. Fully electric and hydrogen cars can apply for the Cleaner Vehicle Discount, which exempts them from the Congestion Charge, though a £10 yearly admin fee applies. From 2026, the discount ends, and EVs will need to pay the same daily charge as other vehicles, or until a new scheme comes into place.

What support is available for EV charging at home?

Renters, flat-owners and landlords can claim the EV Chargepoint Grant, covering 75% of installation costs, capped at £350 per socket. Applications must be through OZEV-approved installers and require off-street parking. The previous grant for single-unit homeowners ended in March 2022, so this scheme now mainly supports multi-occupancy and rental properties.

Is there a UK scrappage scheme for old cars?

There is currently no nationwide scrappage scheme in 2025, but some Scottish cities, such as Glasgow, and English cities such as Bristol, do operate localised schemes. Other cities operate Clean Air Zones with charging rules.