Skip advert
Advertisement
Tips & advice

What was the UK plug-in car grant?

The UK plug-in car grant offered a discount on the cost of buying an electric car before being axed in June 2022

Nissan Leaf - side

New zero-emission cars, primarily EVs, purchased in the UK used to be eligible for the plug-in car grant (PiCG). The Government put a sum of money towards the purchase of zero-emissions vehicles, creating a cash incentive for buyers to switch to electric cars and vans. The plug-in car grant was discontinued in June 2022.

The plug-in car grant, along with higher taxes for some new diesel cars, was aimed at helping the country achieve its targets for cutting CO2 emissions. It also made it easier for people to buy low-emissions cars. The grant was axed in June 2022, but in October 2022 the DfT announced an extension to the scheme that would allow existing orders to be fulfilled following delays caused by supply chain issues.  

Advertisement - Article continues below

In 2025, the UK government announced that it is relaunching an EV grant scheme, known as the Electric Car Grant. The new Electric Car Grant will be available on cars costing under £37,000 and cut the price of a new EV by up to £3,750, subject to certain conditions.

How did the plug-in car grant work?

The Government sorted all cars on sale into seven categories, depending on how much carbon dioxide (CO2) they produced and how far they could travel without any emissions. 

Skip advert
Advertisement
Skip advert
Advertisement - Article continues below

Until October 2018, incentives applied to Category 1, 2 and 3 cars, which were deemed to be the least polluting.

However, various changes to the PiCG meant that Category 2 and 3 vehicles (all plug-in hybrids) eventually lost eligibility for the support, while the discount for Category 1 cars was reduced over time, until the grant was totally axed.

The grant was administered by the Office for Zero Emission Vehicles (OZEV). It decided which cars are eligible based not only on emissions, but also on factors such as safety features, warranty and top speed.

In its final phase before it ended, the grant covered up to 35 per cent of the car’s purchase price, up to a maximum of £1,500, if the car had a list price below £32,000 (any optional equipment selected by the customer was not included in the calculated list price). 

Advertisement - Article continues below

An eligible car also needed CO2 emissions of less than 50g/km, and had to be able to travel at least 70 miles without emitting any CO2. Finally, it had to be on the OZEV's approved list.

MG5 vs Volkswagen ID.3 - front static

What cars qualified for the plug-in car grant?

Cars which qualified for the plug-in car grant were were categorised as follows:

  • Category 1: Vehicles with a range of 70 miles making zero emissions, and a manufacturer quoted CO2 emissions figure of less than 50g/km.
  • Category 2: Vehicles with a range of at least 10 miles making zero emissions, and a manufacturer quoted CO2 emissions figure of less than 50g/km.
  • Category 3: Vehicles with a range of at least 20 miles making zero emissions, and a manufacturer quoted CO2 emissions figure of between 50-75g/km.
Skip advert
Advertisement
Skip advert
Advertisement - Article continues below

If your car qualified for Category 1 and cost less than £32,000 new, excluding any optional extras, then you could have benefitted from the PiCG maximum, which paid 35 per cent of the car's value, up to a maximum amount of £1,500.

Category 2 and 3 vehicles used to qualify for a 35 per cent reduction if they cost under £60,000, with the maximum amount saved at £2,500. However, the 2018 reforms meant Category 2 and 3 cars no longer qualified for the PiCG.

How did you apply for a Plug-in Car Grant?

There was no need for buyers to do anything to ensure that the PiCG was applied to the car that they buy, because the dealer they were buying from handled all the paperwork. The grant used to be deducted from the car's list price, and the dealer did the rest.

Are there any other electric car grants available?

There are other grants which you might be eligible for if you’re looking to buy an electric car.

Advertisement - Article continues below

The Government will also give you up to 75 per cent of the cost of installing a home-charging wallbox, up to a maximum of £350. There are a few conditions you must meet.. The charger must officially be an approved ‘smart’ charger and you need to have your own off-street parking. You must also be the registered keeper of an eligible car (or have one on order).

Skip advert
Advertisement
Skip advert
Advertisement - Article continues below

While not officially a grant, some car brands and dealerships currently offer large discounts or zero-per cent interest and PCP deals when you order a brand-new electric car.

Fiat e-Doblo - front tracking

Is there a plug-in van grant? 

Van buyers can get a grant worth up to 35 per cent of the cost of an electric van with a value cap based on the gross vehicle weight of the van. For small vans the cap is £2,500 and for large vans it's £5,000. You can get full details on the plug-in van grant here.

Now you can buy a car through our network of top dealers around the UK. Search for the latest deals…

Your electric car questions answered

Skip advert
Advertisement
Content editor

Ryan is responsible for looking after the day-to-day running of the Auto Express website and social media channels. Prior to joining Auto Express in 2023, he worked at a global OEM automotive manufacturer, as well as a specialist automotive PR and marketing agency.

Find a car with the experts

Skip advert
Advertisement

Recommended

Used Kia Sportage (Mk2, 2005-2010) buyer’s guide: now rare, but still dependable
Kia Sportage Mk2 (used) - front

Used Kia Sportage (Mk2, 2005-2010) buyer’s guide: now rare, but still dependable

A full used buyer’s guide on the Kia Sportage, covering the Mk2 that was on sale between 2005 and 2010
Used car tests
1 Nov 2025
Used Kia Sportage (Mk3, 2010-2016) buyer’s guide: join the SUV crowd for less than you'd think
Kia Sportage Mk3 - front

Used Kia Sportage (Mk3, 2010-2016) buyer’s guide: join the SUV crowd for less than you'd think

A full used buyer’s guide on the Kia Sportage covering the Sportage Mk3 that was on sale between 2010 and 2016
Used car tests
1 Nov 2025
Used Kia Sportage (Mk4, 2016-2021) buyer’s guide: popular for a very good reason
Kia Sportage Mk4 - front static

Used Kia Sportage (Mk4, 2016-2021) buyer’s guide: popular for a very good reason

Our full used buyer’s guide on the Kia Sportage, covering the Sportage Mk4 that was on sale between 2016 and 2021
Used car tests
1 Nov 2025
How to avoid buying a car with finance outstanding
Two people browsing a car dealership forecourt

How to avoid buying a car with finance outstanding

There’s a risk that the car you’re thinking of buying might have outstanding finance payments. Here’s what happens if you unknowingly buy a car like t…
Tips & advice
9 Oct 2025

Most Popular

Why are Chinese cars flooding the UK?
New Omoda 5 and Jaecoo 7

Why are Chinese cars flooding the UK?

We investigate why the British market is so attractive to Chinese brands
Features
31 Oct 2025
The Renault 4 looks irresistible thanks to its bargain pricing
Opinion - Renault 4

The Renault 4 looks irresistible thanks to its bargain pricing

Mike Rutherford takes a look at the New Car World Championships, where the Renault 4 took top honours
Opinion
2 Nov 2025
Citroen C3 Aircross vs Dacia Jogger: the budget seven-seater test we’ve been waiting for
Citroen C3 Aircross vs Dacia Jogger - front tracking

Citroen C3 Aircross vs Dacia Jogger: the budget seven-seater test we’ve been waiting for

New Citroen C3 Aircross arrives to challenge Dacia Jogger’s budget seven-seater crown
Car group tests
1 Nov 2025