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DfT Adds £42,000 Cap to UK Electric Car Grant, Curbing High‑Spec EV Discounts

The update focuses taxpayer support on lower-cost EVs through tighter pricing rules, with eligibility set by the cheapest powertrain variant.

Overview

  • From August 29, variants within an interpolation family priced above £42,000 no longer qualify for grants even if entry versions meet the £37,000 threshold.
  • Department for Transport guidance clarifies that eligibility is determined by the RRP of the lowest‑priced variant for each powertrain, with certain options and fees excluded from RRP.
  • Twenty‑eight models have been confirmed so far, with only Ford’s Puma Gen‑E and e‑Tourneo Courier meeting the top sustainability bar for the full £3,750 discount.
  • Industry bodies and dealer groups report a confusing rollout and delayed purchases as approvals arrive in small batches, citing a dip in registrations linked to buyer uncertainty.
  • Officials say more models will be assessed in the coming weeks under sustainability criteria, with some reports expecting many China‑built cars to miss out due to production emissions.