Electric Car Grant Changes – Amount Slashed And Criteria Changed

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The UK Government has cut the electric car grant by £1,000, meaning the maximum grant you can get for an EV is £1,500. Criteria has changed too, so that you only qualify for the plug-in grant if your electric car is priced under £32,000.

The plug-in grant has supported nearly half a million vehicles over the past 10 years. But with sales of zero-emission cars up 89% compared to 2020, the government has made the decision to cut the grant in an effort to “focus on the most affordable zero-emission cars”. This, the government has said, will “allow the scheme’s funding to go further and help more people make the switch to an electric vehicle.”

Wheelchair access EVs are also being prioritised, with these models retaining the £2,500 grant and eligiblity price cap being £35,000.

This is the second time the government has slashed the grants, with last year seeing a reduction from £3,000 to £2,500, while at the same time excluding models costing more than £35,000.


Van, motorcycle and moped grants


The rate of grants for vans, motorcycles and mopeds will change too.

The Plug-in Van Grant will now be £5,000 for large vans and £2,500 for small vans. It will also be limited to 1,000 grants per customer per financial year (April 1 to March 31).

As for motorcycle and moped grants, £500 will be knocked off the cost of a motorcycle, and £150 for mopeds. The price cap for these is set at £10,000.


How does the plug-in grant work for cars on lease/finance?


You’ll be glad to know that when you lease an electric car, the plug-in grant will be automatically applied. This will bring down the total cost of lease for your EV and you should see a reduction in your monthly payments.

The same applies when you finance a brand-new car. Unfortunately, the discount doesn’t apply to used cars.


Top 5 electric cars under £32k


The silver lining in all this is that there are still some really good electric cars out there worth less than £32,000, that would still qualify for the plug-in grant.

Here are 5 of our favourite EVs under the £32k price bracket.


1. Fiat 500 Electric – priced from £23,995

New Fiat 500

Recently named ‘Best Urban Electric Car’ in 2022, the new Fiat 500 Electric is a fantastic example of how far small EVs have come.

With a chunky 42kWh battery available which promises a real-world range of around 145 miles, the average UK driver won’t have to worry about this car dying on them suddenly.

Each Fiat 500 Electric has rapid DC charging capabilities too, so you can get an 80%% charge in just 25 minutes.

There are also a whole host of stylish trims to choose from. You can either opt for a jazzier design, increased comfort or more onboard technology.


Compare Fiat 500 Electric lease deals


2. Vauxhall Corsa-e – priced from £27,140

Vauxhall Corsa-e

The Vauxhall Corsa-e might be Vauxhall’s first EV, but it’s been a hit with people considering an EV. This is mainly due to the fact that it’s built on the success of the petrol and diesel model that’s still the best-selling vehicle in the UK.

There are two things that distinguish the Corsa-e from its combstion engine relative:

  1. It has a longer wheelbase to help accomodate its battery pack
  2. It’s powered by a 50kWh battery and a single 136bhp electric motor

While the Corsa-e’s ride is not as nimble as a result of the added weight and longer wheelbase, performance is still pretty decent.

Acceleration from 0-60mph takes just 7.6 seconds and the real-world range is 170 miles between charges.


Compare Corsa-e lease deals


3. MG ZS EV – priced from £28,495


Behold, the most affordable electric SUV you can currently buy. The MG ZS EV is brilliant value for money, especially when you consider that there’s a long range version that has a massive 73kWh battery, translating to a real world range of roughly 252 miles.

Then you’ve got the car itself, which is generously equipped and stylish, regardless of the trim you choose. Even the entry-level SE version gets a plush 10.1in colour touchscreen infotainment system, a full driver’s display behind the steering wheel and driver assistance systems such as adaptive cruise control, rear parking sensors and lane keep assist with lane departure warning.


Compare MG ZS EV lease deals


4. Volkswagen ID.3 – priced from £28,420

Volkswagen ID.3

The Volkswagen ID.3 was the first car to be launched under Volkswagen’s impressive new electric ‘ID’ range.

It’s a multi-award winning family car that has a mind-boggling array of battery and electric motor combination options to suit any type of driver. From the off, the car comes with a 45kWh battery pack that has a real range of around 170 miles. This pairs with a 148bhp electric motor that feels pretty spritely too.

Step up to the mid-range 58kWh battery and range is bumped up to a healthier 215 miles. However, be warned that the Pro version that has this pack has the least powerful 143bhp electric motor. So, you might want to step up to the Pro Performance variation – this adds a punchy 201bhp electric motor that injects the car with hot hatch acceleration (0-60mph takes just 6.6 seconds).

For those of you that are after the longest range, check out the top-spec Pro S 77kWh battery model. In the real world this will travel around 280 miles between charges, while still getting the performance perks of the bigger 201bhp electric motor. Just bear in mind that the bigger battery makes it heavier, so acceleration from 0-60mph takes around 7.9 seconds.


Compare VW ID.3 lease deals


5. Peugeot e-208 – priced from £27,225

Peugeot e-208

If you’re looking to switch to an electric car, but don’t want to make a big song and dance about it? Then the Peugeot e-208 is a fantastic choice.

Like the Vauxhall Corsa-e, the e-208 comes with a 50kWh battery pack that promises a real world range of around 170 miles. What’s more is that it has a spritely character thanks to a 134bhp that sprints from 0-60mph in 7.5 seconds.

Ride comfort and the standard Peugeot 208’s sporty, modern looks inside-out are also key selling points of this EV. Also, what it has over rivals such as the Renault Zoe and Mini Electric is that it keeps out wind and road noise much better than these models.

When configuring your Peugeot e-208, you’ll have access to four great trims. Even the standard Active Premium trim includes 16in alloy wheels, a 3D satnav, carbon effect dashboard, and Peugeot’s latest digital i-Cockpit.


Compare Peugeot 208 lease deals


Need help finding your new electric car? Moneyshake simplifies your search for a brand-new EV by bringing you the very best deals to one place.


Compare electric lease deals


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