There have been many reasons for the slowdown in demand for electric cars over the last couple of years, but one of them is doubtless the fact that lots of countries – Britain included – have scaled back or entirely removed grants and incentives that were previously introduced to spur on adoption.
Now, though, they’re making a return in the UK. After the previous Conservative government removed EV grants in 2022, the current Labour administration has set aside £650 million that’ll see up to £3750 taken off the price of EVs, up to a certain cost threshold. That funding is planned to run until the 2028-29 financial year, although could end sooner if high demand sees it all used up.
Renault 5
The grant works a bit differently to last time, though. Under the old system, buyers applied for a fixed £1500 grant towards EVs priced up to £32,000. This time, it’ll be the manufacturers themselves doing it, with applications open from tomorrow, Wednesday 16 July, and the upper price threshold has been raised to £37,000. The amount knocked off will be variable, too.
That’s because the reductions will be split into two bands, based around currently undisclosed ‘sustainability criteria’. In other words, cars manufactured in more sustainable ways will be eligible for the full £3750 grant, while EVs in the lower band will get only £1500 knocked off their list prices.
Abarth 600e
Which Car Throttle-friendly EVs could you soon be scooping up a taxpayer-funded discount on, then? Most versions of the Alpine A290 will theoretically be eligible, although the range-topping GTS sits on just the wrong side of the threshold at £37,500. Its equally loveable Renault 5 sibling, which currently starts at £22,995, could be about to get even more affordable, though.
The 237bhp base model Abarth 600e just squeaks in at £36,985, and Fiat’s streamlined equipment levels mean that besides some swishier paint, there are no cost options to push that above the threshold. The hotter 276bhp Scorpionissima version, though, won’t be eligible.
Mini JCW Electric
The 255bhp Mini JCW Electric, meanwhile, has a decent bit of headroom with its £34,905 list price. Remember, though, that all these hypothetical discounts rely on the manufacturers themselves applying for them, and the government signing off on them. And before you ask, no, the Hyundai Ioniq 5 N does not cost under £37,000. Sad face, we know.
