New Electric Car Grant £42k price limit closes massive EV discount loophole
Labour has placed a new £42,000 price cap on vehicles that qualify for its new government-funded electric car discount
The government has announced a new limit on the recently-introduced Electric Car Grant (ECG), which places a £42,000 price cap on model eligibility, excluding many top trim level cars from the discount.
Since its introduction in July, the UK Electric Car Grant requires all new models to cost below £37,000 in order to qualify. However, in true governmental fashion, the reality is a little more complex than that. For a short time, the rules left open several loopholes that have enabled buyers to claim the grant for considerably more expensive vehicles.
The reason for this is that while an electric vehicle must indeed start from under £37k in order to qualify, this only applies to the particular powertrain in question. It previously meant that a car like the Volkswagen ID.3 Pro S, which starts from just under the £37,000 base cap, could be raised in price up to as much as £48,000 by ticking all the options boxes and still get the grant.
This loophole has now been closed, however, as the Department for Transport website now clearly outlines that: “If a vehicle is part of the same interpolation family as a variant-version that has an RRP below £37,000, then the interpolation family, up to a maximum price limit of £42,000, will be treated as having met the price requirement.”
In a statement, a DfT spokesperson said: “The Electric Car Grant is putting money back in people’s 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.”
Such a tweak to the rules comes soon after the Ford Puma Gen-E, as well as the Ford Tourneo E-Courier, became the first vehicles to qualify for the full government grant amount. The ECG is split into two bands – Band 1 (£3,750) and Band 2 (£1,500) – with every other car announced as eligible up to this point only achieving the lower rating.
All of the current Electric Car Grant eligible vehicles are available via the Auto Express Buy A Car service. In many cases the UK dealer network is offering additional discounts to supplement the EGC and manufacturers of electric cars that are not eligible for the grant have also lowered prices to compete. You can find all the latest deals here, just spec your can and see what the dealers have to offer…
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