Particle.news

Download on the App Store

Government Adds £42,000 Cap to Electric Car Grant, Narrowing Eligibility

The new £42,000 limit closes a loophole that let high‑spec trims qualify off a cheaper base model.

Overview

  • From 29 August, DfT guidance applies a £42,000 ceiling to each model’s interpolation family, meaning higher‑priced variants no longer qualify even if an entry version is under £37,000.
  • Coverage cites examples such as front‑wheel‑drive Nissan Ariya trims above £42,000 losing access to the £1,500 grant despite cheaper versions remaining eligible.
  • The scheme now lists 28 eligible models, with Ford’s Puma Gen‑E and e‑Tourneo Courier confirmed as the first to receive the full £3,750 Band 1 discount.
  • Grants of £1,500 or £3,750 apply only to EVs with base RRPs below £37,000 that meet lifecycle sustainability standards, including strict battery and manufacturing emissions criteria.
  • Dealers and industry groups report confusion from phased approvals and complex rules, with some buyers postponing orders while waiting for clarity on which models qualify.