- Price cap: Only new EVs with a retail price of £37,000 or less will qualify.
- Sustainability commitments: Manufacturers must sign up to science-based targets for reducing carbon emissions (including the vehicle’s production footprint).
The influx of new brands and stiffer competition is making EVs more affordable than ever. But there’s more work to be done if the UK is to keep pace with the government’s zero emission vehicle (ZEV) mandate which requires at least 28% of new cars sold in 2025 to be fully electric, increasing to 80% by the end of the decade.
In an effort to boost EV sales, the government is rolling out a new point-of-sale discount worth as much as £3,750 for eligible electric cars. Vehicle eligibility will be determined by two main criteria:
The influx of new brands and stiffer competition is making EVs more affordable than ever. But there’s more work to be done if the UK is to keep pace with the government’s zero emission vehicle (ZEV) mandate which requires at least 28% of new cars sold in 2025 to be fully electric, increasing to 80% by the end of the decade.
In an effort to boost EV sales, the government is rolling out a new point-of-sale discount worth as much as £3,750 for eligible electric cars. Vehicle eligibility will be determined by two main criteria:
Initial reports suggest the full £3,750 will be reserved for models with the lowest overall emissions. Other qualifying cars could receive a partial discount of up to £1,500, depending on their carbon intensity.
Funding window to 2028/29
The scheme launches in summer 2025 and will run until the end of the 2028/29 financial year — aligning with the final ramp-up period before the UK’s ban on new petrol and diesel-only cars comes into effect.
Tackling the cost of charging at home
As well as cutting upfront costs, the government is also aiming to reduce long-term expenses by making home charging more accessible. A £25 million funding pot has been allocated to support local authorities in trialling technologies that allow residents to connect vehicles to home chargepoints via under-pavement or gully cables.
This is especially relevant for households without off-street parking, where the cost gap between public and private charging can be stark. Public chargers typically cost 51p to 76p per kWh depending on speed, compared to as little as 7p per kWh for those able to charge overnight at home.
Taken together, these measures form part of a broader push to encourage more drivers to switch ahead of 2030. With fresh government backing, an expanding EV market, and more affordable models entering the UK, many of the barriers to going electric are quickly falling away.
To find out more about which vehicles qualify and the best leasing deals around, just get in touch.
