The Government’s brand-new Electric Car Grant (ECG) has only been live since mid-July, but it’s already running into problems.
The scheme is meant to boost EV sales after months of slowing demand, offering drivers up to £3,750 off the price of a new electric car. But there’s a catch: only models under £37,000 qualify, and carmakers also have to meet tough sustainability rules before their vehicles are approved.
So far, just 28 cars have made the cut. Even then, they’re split into two categories. Band 1 covers the greenest EVs, getting the full £3,750 discount. Only Ford’s Puma Gen-E and E-Tourneo Courier qualify. Band 2 covers slightly less sustainable cars, getting £1,500 off.
This week, the Government added yet another rule: a £42,000 price cap. That means if a model’s higher-spec versions cost more than £42k, they’re kicked out of the scheme, even if the cheaper versions qualify. For example, the entry-level Nissan Ariya gets £1,500 off, but the top trim with a panoramic sunroof and high-end sound system no longer qualifies.
The idea is that anyone spending more than £42k on an EV doesn’t need taxpayer help. But critics say this also means advanced safety tech, usually bundled into pricier trims, could be locked away from buyers who still want the grant.
Dealers aren’t happy either. Many say the rollout has been chaotic, with buyers holding off purchases until they know if their car qualifies and if it’ll get the full £3,750 or just £1,500. Some drivers are even walking into showrooms demanding discounts on cars that aren’t eligible yet.
The Department for Transport insists the grant is “putting money back in people’s pockets” and helping the industry. But car bosses argue the slow drip-feed of announcements, lack of clarity, and exclusion of used EVs has left consumers confused and the scheme looking like a rushed government mess.
