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UK Adds £42,000 Price Cap to Electric Car Grant, Limiting Higher-Spec Trims

Ministers say the change targets subsidies at lower-priced versions to focus support on cheaper cars.

Overview

  • From 29 August 2025, any eligible EV variant priced above £42,000 loses grant support under a new Department for Transport rule applied at the interpolation-family level.
  • Eligibility is based on the RRP of the lowest-priced variant within each distinct powertrain, with the RRP excluding non‑standard options, warranties, insurance, service packages and first registration costs.
  • The scheme retains two tiers of discount—£3,750 for Band 1 and £1,500 for Band 2—for models starting under £37,000, with roughly 28 models listed so far and only Ford’s Puma Gen‑E and E‑Tourneo Courier in Band 1.
  • The additional cap means higher-spec trims sharing the same drivetrain can be excluded, such as front‑wheel‑drive Nissan Ariya versions above £42,000.
  • Approvals continue in small batches, dealers report confusion and delayed purchases, and Chinese-made models are widely expected to be ruled out by the sustainability thresholds.