Drivers lose out as 拢42k price cap slashes electric car grant options
August 29, 2025 by Siobhan Doyle
Car changing is a big deal
Eyeing up an EV model with a pricier trim that鈥檚 under the electric car grant? The DfT has closed that loophole with a 拢42,000 price cap.
The Department for Transport (DfT) has tightened up the rules on its Electric Car Grant (ECG), meaning fewer cars now qualify for discounts.
The scheme, which launched last month, offers buyers up to 拢3,750 off when choosing a new EV priced at 拢37,000 or under. The catch? Until now, eligibility was based on the cheapest version of a model. That meant if one trim slipped under the 拢37,000 limit, even the pricier versions of the same car could still bag a grant, so long as they have the same size battery.
Not anymore. A new cap has been introduced: only variants up to 拢42,000 will qualify. Anything above this is out.
Take the Nissan Ariya, for example, which already qualifies for the grant. Nissan recently launched a sub-拢37k entry model, which meant that every front-wheel-drive version 鈥 right up to its 拢44,500 Evolve trim 鈥 was eligible for the 拢1,500 grant. But with the 拢42,000 threshold, those top-end versions are now excluded.
A DfT spokesperson said: 鈥淭he electric car grant is putting money back in people鈥檚 pockets whilst also providing a vital boost for industry. The maximum price limit ensures only eligible cars priced at the lower end of the market can qualify for the discounts, ensuring government support is targeted.鈥
The 拢37,000 base limit remains, but pricier trims can only qualify if they cost no more than 拢5,000 over the base model.
This comes as the government confirmed the first cars to receive the full 拢3,750 discount: the Ford Puma Gen-E and the E-Tourneo Courier.
As it stands, 28 EVs now qualify for a grant, with more expected to be added soon 鈥 though choice is narrowing at the higher end.
Car change? 莲花直播!
Looking for a new set of wheels? With 莲花直播 you can sell your car quickly and for a fair price 鈥 as well as find great offers on your next one. Whether you鈥檙e looking to buy a car brand new, are after something used or you want to explore car leasing options, 莲花直播 is your one stop shop for new car deals.
Click to follow us on WhatsApp, where you can keep up-to-date with all the latest news, reviews, advice guides and videos.