Recent research carried out by Santander Consumer UK revealed that almost two-thirds (62%) were unaware of any government electric vehicle grants or special finance products to help buy or lease electric vehicles (EVs). As the ICE ban in 2035 draws closer, it is important to understand the financial support available to someone looking to switch to an electric car or van.
The deadline for claiming several electric vehicle government grants has been extended to 31 March 2026. The extended deadline is great news for individuals and businesses to take advantage of the financial support on offer.
Previously, the government has provided initiatives to support the uptake of electric vehicles, with the first electric vehicle grants being launched in 2011. This grant provided up to 35% off the list price (up to £5,000) of a new plug-in hybrid or fully electric vehicle. Since then, fully electric car sales have increased from 1,082 in 2011 to 381,970 in 2024 (SMMT Car Registrations). Due to the strong adoption across the market, this grant was gradually phased out and officially scrapped in 2022. However, some support is still available.
Continue reading to learn which electric vehicle grants are still available for EV drivers, whether you are eligible, and what additional financial support is available.
Which electric vehicle grants are still available?
Plug-in Vehicle Grant
The government offer a Plug-in Vehicle Grant; however, only wheelchair-accessible vehicles, motorcycles, vans, trucks, and taxis are eligible.
This limited grant enables vehicle dealers and manufacturers to sell some vans at a 35% discount, which is automatically included in the purchase price for the buyer. The maximum discount for small vans (less than 2,500kg vehicle weight) is £2,500. The maximum discount for large vans (between 2,500kg and 4,250kg) is £5,000.
Unfortunately, this grant is unavailable for those wishing to purchase or lease an electric car.
EV Chargepoint Grant for Renters or Flat Owners
With 83% of customers concerned about access to charging points, installing a home chargepoint is a great way to gain peace of mind and reduce running costs.
The Electric Vehicle Chargepoint Grant covers up to 75% of the cost of installing a home charge point for renters or flat owners who own an OZEV-approved electric vehicle. If eligible, you can receive up to £350 to help towards the installation cost.
Funding for the EV Charging Grant has been confirmed until 31 March 2026.
EV Chargepoint and Infrastructure Grants for Landlords
The Electric Vehicle Chargepoint and Infrastructure Grants for Landlords support the improvement in charger access for rental properties throughout the UK. There are two grants available for landlords:
- EV Chargepoint Grant: Landlords can get up to £350 off the cost of buying and installing a chargepoint. They can request up to 200 grants a year for residential properties and 100 grants for commercial properties.
- EV Infrastructure Grant: For wider building installation work, this grant enables landlords to get up to £30,000 towards the installation of multiple chargepoints. The amount depends on the amount of parking spaces covered by the work. Landlords can get up to 30 infrastructure grants per year.
Workplace Charging Scheme
The Workplace Charging Scheme is a great option for businesses looking to transition to an electric company car fleet or encourage their employees to drive EVs.
The scheme covers up to 75% (max £350 per socket) of the total cost to purchase and install workplace EV chargepoints. The grant can be used for up to 40 sockets across all sites per application. If successful, the applicant will receive a voucher to purchase and install the chargepoints via an OZEV-authorised installer.
This scheme has been extended for an additional year and is open for applications until 31 March 2026.
Electric Company Car Benefit-In-Kind (BiK) Rates
By choosing to drive an electric company car, employees can benefit from lower Benefit-in-Kind (BiK) tax rates.
The amount of BiK tax the employee pays is determined by the vehicle’s list price, CO2 emissions, electric range (for hybrid vehicles), and the employee’s tax band.
The BiK rate for EVs is set to increase to 3% from 2% in the 2025/26 tax year. However, for higher-emission vehicles, the BiK rate can be as high as 37%. This represents a significant difference in tax payable for the employee. The examples below compare the BiK for popular electric cars against their petrol counterparts for 40% and 20% taxpayers.
| BMW iX 111.5kWh xDrive50 M Sport CO2 (g/km): 0 List price: £104,285 BiK rate: 3% BiK: £3,127 Tax payable at 40%: £1,251 | BMW X5 xDrive M60i CO2 (g/km): 263 List price: £94,390 BiK rate: 37% BiK: £33,892 Tax payable at 40%: £13,557 |
| Fiat 500E 42kWh CO2 (g/km): 0 List price: £27,995 BiK rate: 3% BiK: £838 Tax payable at 20%: £168 | Fiat 500 1.0 Mild Hybrid Top CO2 (g/km): 106 List price: £18,300 BiK rate: 27% BiK: £4,874 Tax payable at 20%: £975 |
This useful Company Car Tax Calculator will help you estimate how much you can save by choosing electric over ICE for your company car.
View the Benefit-in-Kind tax tables up to 2030
Electric Vehicle Energy Tariffs
Despite the reduction in government grants available, there are other financial support options for EV drivers. This includes special tariffs provided by energy suppliers that allow you to charge your EV at a cheaper rate during off-peak hours if you have a home charging point. This is, without a doubt, the most affordable way to charge your electric vehicle.
- Two-rate tariffs provide much lower rates at night, meaning drivers can charge their car overnight for a much lower cost.
- Add-on tariffs allow you to charge your car at a cheaper rate at any time, however, you need a compatible EV and a smart charger.
Currently, EV drivers with home charge points can access rates as little as 6.7p per kWh during off-peak hours. To learn more, read Go Compare’s EV Tariff Comparison.
Vehicle Excise Duty
Until this year, EVs have been exempt from paying Vehicle Excise Duty (VED), also known as road or vehicle tax. Electric cars are now subject to £10 road tax in the first year of registration and the standard rate for cars of £195 for each year thereafter. Electric vans will now be subject to the standard rate for vans, most of which are £355 per year.
Whilst this represents an additional cost for electric vehicle owners, the road tax is still significantly lower than that for higher-emission vehicles.
To learn more about the VED changes coming on 1 April 2025, read our recent article: Road Tax Changes: 2025 VED Rates Explained – Santander Consumer Finance