Government electric car grants: watt you need to know

TrustFord has been keeping a keen eye on the ever-changing landscape of electric car incentives. And, agreed, it’s confusing. So, for your convenience, we’ve listed them all here and broken down who can get what and when.

No matter the timeline, we're steadily approaching an all-electric future.

Many incentives are available for drivers and businesses to help with this transition, both technically and financially, easing the switch.

We know acronyms, tax codes, and jargon can be confusing. But don't worry—I’ve got you covered.

What electric car incentives for people?

Name of Incentive Which means? Closing Date
No Road Tax Zero-emission vehicles won't have to pay any Vehicle Excise Duty (road tax). If you have a zero-emission car registered on or after 1 April 2017, you'll only need to pay the lowest first-year rate, which is currently for vehicles with CO2 emissions between 1 to 50g/km. After the first year, your car will move to the standard annual rate. Starts in 2025, with no expiration date set.
Charge point Grant for renters and homeowners

This grant covers up to 75% of installation costs, up to £350 per socket, with a limit of 40 sockets per applicant. Thanks to this support, over 200,000 charging points have already been installed.

31 March 2026
Charge point Grant for flat owners and tenants

Grants cover up to 75% of installation costs, with a cap of £350 per socket, specifically for renters and flat owners.

31 March 2026
Electric Vehicle Charge Points for Households with on street parking  You can get 75% off the cost to buy and install a socket, up to £350. To apply for this grant, you need to own or rent a residential property where you live, have adequate on-street parking as defined by your local planning and council permission 31 March 2026
Benefit in Kind tax 

The BiK rates for cars are based on their CO2 emissions. They range from 2% for zero- and low-emission vehicles up to 30% for higher-polluting cars.

The BiK rate for electric cars went up from 1% to 2% on 6th April 2022, and will stay at 2% until April 2025.

Starting in April 2025, the BiK rate will increase by 1% annually until 2027, when it will reach 5%.

None

 

 

What electric car incentives are available for businesses?

Name of Incentive Which means? Closing Date
Electric Vehicle charge point and infrastructure grants for landlords

These grants cover up to 75% of installation costs, capped at £350 per socket. They encourage landlords of commercial properties to add electric vehicle charging points, enabling easier access to charging for tenants.

None
On-street residential charge point scheme

This scheme helps local authorities install electric vehicle charging points in residential areas for people working remotely. With over 4,000 on-street charging points already in place, more residents can switch to electric vehicles.

Funding covers up to 50% of eligible costs, capped at £200,000, with a maximum of £7,500 per charge point.

March 2025
LEVI funding

LEVI (Local Electric Vehicle Infrastructure) funds help set up charging infrastructure in public spaces like town centres and car parks. The fund includes capital funding for charge point delivery and capability funding to make sure local authorities have the staff and skills needed for planning and installation

31 March 2025
Workplace charging scheme Businesses can receive up to £350 per socket, with a maximum of 40 sockets, to install electric vehicle charging points at workplaces. 31 March 2026
Electric vehicle infrastructure grant for staff and fleets 

Businesses can receive up to £350 per socket, with a maximum of 40 sockets, to support workplace charging for staff and fleets

31 March 2026

 

 

Advice for anyone looking for a cleaner vehicle discount

Applying for an electric vehicle grant can seem daunting, but it can be a pretty straightforward process with the right approach. TrustFord can assist, but in case you want to do it yourself:

  1. Find the right grants: Each grant has specific criteria. For instance, the Electric Vehicle Chargepoint Grant for Households needs proof of property ownership or tenancy and evidence of an eligible vehicle. Make sure you have all the necessary documents before starting your application.

  2. Use online resources: The UK government’s official website provides comprehensive guides and application forms for each grant. Websites of local councils also offer valuable information on local incentives and support schemes.

  3. Get professional help: Consulting with a specialist in EV infrastructure, like a TrustFord representative, can streamline the application process and maximise the benefits for businesses. We can help with planning, installing, and maintaining charging stations.

  4. Stay updated on policy changes: The UK government frequently updates its policies on electric vehicle incentives, so keeping abreast of the latest changes is crucial. Subscribing to newsletters from government websites or industry bodies can provide timely updates.

Choosing an electric car for you

Small Business Owners

The All Electric E Transit is eligible for the plug-in vehicle grant of up to £5,000 as part of the government's incentive scheme. Save up to £5,000 off the price of your All-Electric E-Transit. You don't need to do anything to receive this grant either; we’ll take care of everything for you.

Families

With an iconic new design, superior comfort and advanced driver assistance technology, the New All-Electric Explorer is perfectly equipped for any adventure. With a 14.6” SYNC Move® touchscreen and 17L MegaConsole centre storage, Explorer is packed with practical innovations.

Thrill Seekers

The icon. Electrified. Distinctively Mustang® swagger with all-electric performance. Up to 372-mile driving range with a 0-60 in just 3.8 seconds. Ford Mustang Mach‑E® electric SUV - Don't follow the crowd.

Driving towards a sustainable future with government electric car grants

The UK is moving towards an all-electric future, supported by government grants and incentives. By understanding and using these opportunities, you can save money and help create a cleaner environment.

We’re here to help. Ford ProTM offers a broad range of home, work, depot, and public charging options, as well as connectivity tools to maximise vehicle productivity. With home, depot, and public charging offers available, it’s easy and affordable to get started.

Ready to take the next step? Contact one of my TrustFord colleagues below to discuss the grants you can apply for and the cars you can use to do so with.

Enquire Now

What car incentives have changed?

From April 2025, if you own an electric, zero, or low-emission car, van, or motorcycle, you'll need to pay (aka Vehicle Excise Duty or road tax) just like petrol or diesel vehicles. This applies to both new and existing cars.

So how will these rules impact you?

Electric, zero or low emission cars registered on or after 1 April 2025

Great news for first-timers. You’ll pay just £10 for the first year. After that, it’s the standard £195.

Electric zero or low emission cars registered from April 1, 2017 to March 31, 2025

Got your EV before April? Unfortunately, no discounts here. You’ll be paying the full £195.

Electric, zero, or low emission cars registered between March 1, 2001, and March 31, 2017

For those classic EVs, they’ll move into the first tax band with a VED value of £20.

Hybrid and alternatively fuelled vehicles (AFVs)

 It’s goodbye to the £10 annual discount for hybrids and AFVs. From now on, your tax rate depends on when your car was first registered.

Before April 1, 2017: based on fuel type and CO2 emissions ()

On or After April 1, 2017: get ready to pay the standard rate of £195

Electric vans

 Most electric vans will now switch to the standard annual rate for light goods vehicles. Check the below.

 

Payment option

Amount

Single 12 month payment

£335

Single 12 month payment by direct debit

£335

Total of 12 monthly instalments by direct debit

£351.75

Single 6 month payment

£184.25

6 months by direct debit

£175.88

 

Electric motorcycles

Got an electric motorcycle? You'll pay the annual rate for the smallest engine size. Check the .

Engine size

Single 12 month payment

Single 12 month payment by direct debit

Total of 12 Monthly Instalments by direct debit

Single 6 month payment

6 Months by direct debit

Not over 150

 

 

 

£25

 

£25

 

£26.25

 

N/A

 

N/A

151-400

£55

£55

£57.75

£30.25

£28.88

401-600

£84

£84

£88.20

£46.20

£44.10

Over 600

£117

£117

£122.85

£64.35

£61.43

 

Find out how much road tax you’ll need to pay

UK ROAD TAX (VED) from APRIL 2025 | HOW MUCH WILL YOU PAY?