How the UK Government helps EV owners
How the UK Government helps EV owners
Updated August 2026 with current grant amounts, prices and regulations.
EV driving is on the rise in the UK. Under the Zero Emission Vehicle (ZEV) mandate, 33% of each manufacturer's new car sales must be zero-emission in 2026 (up from 28% in 2025), rising to 80% by 2030 and 100% by 2035, and the sale of new pure petrol and diesel cars ends in 2030. The Government strives to facilitate this shift by offering real help to those car owners who decide to go green. In this post, we present the most important grants and financial benefits EV owners can enjoy in 2026.
Electric vehicle grants
The original Plug-in Car Grant closed in June 2022, but in July 2025 the Government launched a new Electric Car Grant. As before, the grant comes in the form of a discount on the price, applied by the dealer at the point of sale, and it is available only for brand-new vehicles, which makes and models are included in the approved list. Eligible cars must produce zero tailpipe CO2, have a range of at least 100 miles (160 km) and a recommended retail price of up to £37,000. The discount is £3,750 for cars in Band 1 or £1,500 for cars in Band 2, depending on how sustainably the car and its battery are manufactured. Zero-emission vans, trucks and wheelchair-accessible vehicles have their own grants. For more details see the following table.
Grant details
| Category | Max CO2 emissions, g/km | Min zero-emission range, km (miles) | Price discount, % | Maximum grant amount, £ |
|---|---|---|---|---|
| Cars (Electric Car Grant) | 0 | 160 (100) | Fixed discount, RRP up to £37,000 | 3,750 (Band 1) or 1,500 (Band 2) |
| Small vans (under 2.5 t) | 0 | 96 (60) | 35 | 2,500 |
| Large vans (2.5-4.25 t) | 0 | 96 (60) | 35 | 5,000 |
| Small trucks (4.25-12 t) | 0 | 96 (60) | 20 | 15,000 |
| Large trucks (over 12 t) | 0 | 96 (60) | 40 | 37,000-81,000 depending on weight |
| Wheelchair-accessible vehicles | 0 | 112 (70) | 35 (RRP under £50,000) | 2,500 |
Source: Zero emission vehicles eligible for a grant, GOV.UK
However, cars still have an extra requirement related to the purchasing price limitation. To be specific, the maximum recommended retail price here is £37,000. In other words, the grant does not cover premium electric cars, but only the mass-market segment. Note also that the separate plug-in grants for motorcycles and for purpose-built taxis both closed in April 2026.
Charging station grants
As an EV Charging company, we are happy to mention a grant that facilitates charging infrastructure development (check out our documentation to get more information about EV chargers).
The grant comes in the form of funding charging station purchase and installation. It splits into two schemes, both run by the Office for Zero Emission Vehicles (OZEV, formerly OLEV):
- EV chargepoint grant (the successor to the Electric Vehicle Homecharge Scheme);
- Workplace Charging Scheme.
The EV chargepoint grant covers up to 75% of the price for purchasing and installing a home charger, with a cap of £500 per socket since 1 April 2026 (previously £350). It is aimed at drivers who cannot easily install a charger of their own: renters, flat owners, households with only on-street parking who install an approved cross-pavement solution, and residential landlords (up to 200 sockets). Owners of freehold houses with a driveway are no longer eligible for a grant; for them a standard 7 kW home installation in London typically costs £900-1,200. Whatever the route, every new home charge point must be a smart charger and must be notified to the local network operator (UK Power Networks in London). See our EV chargepoint grant 2026 guide and our page on installing a car charging point at home.
Besides, the Workplace Charging Scheme helps businesses, charities and public-sector organisations. It also covers up to 75% of the price for purchasing and installing a station, with a cap of £500 per socket (previously £350) for up to 40 sockets per applicant, and it has been extended to March 2027. Since April 2026 organisations apply directly through OZEV's new digital system rather than via their installer, and state-funded schools can claim £2,000 per socket. Read our Workplace Charging Scheme 2026 guide for details.
Financial benefits and incentives
Also, the government offers many other financial benefits and incentives for EV owners, private or business. Some have been trimmed since 2025 (EVs now pay road tax, and the London Congestion Charge exemption has become a discount), but electric cars remain considerably cheaper to tax and run than petrol or diesel cars:
Financial benefits and incentives
| Benefit category | Private EV owners | Business EV owners |
|---|---|---|
| Parking charge | Zero or reduced (in some boroughs) | Zero or reduced (in some boroughs) |
| Congestion charge (London, £18 a day) | 25% discount for electric cars registered for Auto Pay (from 2 January 2026, replacing the former 100% exemption) | 25% discount for electric cars, 50% for electric vans and HGVs on Auto Pay |
| Fuel Duty | Zero (electricity is not subject to fuel duty; home charging carries 5% VAT) | Zero (electricity is not subject to fuel duty) |
| Vehicle Excise Duty (Road Tax) |
£10 in the first year, then £200 per year (2026/27 standard rate)
Additionally: £440 per year in years two to six only for EVs with a list price over £50,000 (threshold raised from £40k in April 2026) A pay-per-mile charge (eVED, 3p per mile) has been announced from April 2028 |
£10 in the first year, then £200 per year (2026/27 standard rate)
Additionally: £440 per year in years two to six only for EVs with a list price over £50,000 Electric vans stay outside the announced pay-per-mile charge |
| Company car tax (Income tax and National Insurance on Benefit in Kind) | Only 4% of list price for zero-emission cars in 2026/27 (5% in 2027/28, 9% by 2029/30), against up to 37% for petrol and diesel | |
| Car fuel benefit charge | Zero for pure electric cars (electricity is not treated as fuel) | |
| Capital Allowances | 100% first-year allowance on zero-emission cars and charge point equipment (extended to 31 March 2027) |
Sources: GOV.UK. Vehicle tax rates, GOV.UK. Company car benefit: the appropriate percentage, TfL. Congestion Charge discounts and exemptions, 2026
To sum up, the UK Government still contributes largely to the electric car spread. It avails grants for purchasing electric vehicles and charging stations and provides essential tax and charge benefits, even if some of them are less generous than they were a few years ago. This way the government helps to overcome some drawbacks electric vehicles may have and enhance their advantages.