London, November 23, 2025
The UK government plans to announce a £1.3 billion increase to the Electric Vehicle (EV) Grant scheme on November 26, 2025, tripling the value of existing support to accelerate the transition from petrol and diesel cars to EVs and support national climate goals.
£1.3 Billion Boost to Electric Vehicle Grants
This significant funding uplift will expand the current EV grant, initiated in July 2025, which offers households up to £3,750 off the purchase price of eligible electric vehicles. The enhanced scheme will operate through to the 2029/30 financial year, aiming to substantially increase EV adoption among motorists in the UK.
Complementary Funding and Strategic Investments
The boost is part of a wider £1.5 billion government package, which includes a dedicated £200 million investment to expand EV charging infrastructure. This includes plans for thousands of new chargepoints with a focus on areas where off-street parking is limited, addressing key barriers to EV uptake.
Additional components of the package involve the UK’s first comprehensive strategy to promote domestic production and recycling of critical minerals essential for EV batteries. This initiative seeks to reduce reliance on international supply chains and bolster the UK’s position in the EV manufacturing sector.
Context and Policy Objectives
Despite steady growth in EV sales, current uptake lags behind governmental targets designed to phase out petrol and diesel vehicles by 2035. Early data shows that electric vehicles account for about 23.8% of new car registrations, unchanged since the grant’s introduction, highlighting the need for further incentives.
The enhanced grant scheme reflects the government’s commitment to meeting climate change targets by reducing vehicle emissions and supporting green economic growth and job creation. It also aligns with industrial priorities to secure the UK’s role in emerging sectors linked to clean transportation technologies.
As the UK prepares to announce this investment, businesses, policymakers, and consumers can expect a reinforced push toward electrification that addresses both financial and infrastructural challenges in the transition to sustainable transport.