Grants

Electric Car Grant UK: what Band 1 and Band 2 actually pay

The current UK grant is £3,750 or £1,500 depending on the official band. The dealer applies it. Tesla and MG4 are not on the list.

8 minute read · Updated 2026-08-14

Rent an EV

Grants

Sourced from GOV.UK, HMRC or DVLA — not a forum screenshot.

What the grant is

The UK government still discounts some new zero-emission cars. The discount is not a cashback form you post to OZEV. The dealer takes it off the invoice.

There are two bands. Band 1 pays up to £3,750. Band 2 pays up to £1,500. Which band you get depends on how the government has assessed that exact model, not on how much you like the car.

Who does not get it

If the car is not on the live GOV.UK list, there is no grant. Popular names missing from the current list include Tesla Model 3, Tesla Model Y and MG4.

Used cars do not qualify. Neither do most plug-in hybrids. The car must be a new zero-emission M1 passenger vehicle with at least 100 miles of range and the stated warranties.

How to use this on a Leicester order

Ask the desk to show you the current GOV.UK entry for the exact derivative, not a brochure line. If they cannot, do not let them price a grant you may never receive.

Questions

Is this the old Plug-in Car Grant?

No. That scheme ended. The live scheme is the Electric Car Grant with two bands.

Do I fill in a form?

No. The seller includes the discount in the price if the car is approved.

Sources