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UK Tightens Electric Car Grant With £42,000 Cap on Eligible Variants

The new limit steers subsidies toward lower-cost trims.

Overview

  • From 29 August, the Department for Transport introduced a £42,000 ceiling applied at the interpolation-family level, removing higher-spec versions above that price from eligibility.
  • Eligibility for each powertrain is set by the lowest-priced variant’s RRP, which excludes non-standard options, extra warranties, service packages and first registration or licence fees.
  • Twenty-eight models are currently listed, with Ford’s Puma Gen‑E and e‑Tourneo Courier the only Band 1 cars qualifying for the full £3,750, while most others receive £1,500 in Band 2.
  • Dealers and industry groups report confusion from staggered approvals and complex rules, as a DfT spokesperson insists the grant returns savings to motorists and supports the sector.
  • Coverage notes Chinese brands are expected to be excluded due to sustainability criteria linked to production emissions, and further manufacturer applications remain under review.