The UK government has introduced a £42,000 price cap on its Electric Car Grant (ECG), tightening eligibility rules to ensure subsidies are directed at more affordable zero-emission vehicles.
Previously, higher-priced trims could qualify for discounts as long as the entry-level version of the same model was priced below £37,000. The revision, which takes effect immediately, affects models such as Nissan’s Ariya, where the £44,500 Evolve trim will no longer be eligible despite cheaper variants qualifying under the earlier rules.
“If a vehicle is part of the same interpolation family as a variant-version that has an RRP below £37,000, then the interpolation family, up to a maximum price limit of £42,000, will be treated as having met the price requirement,” the government website states.
The Department for Transport (DfT) said the change is intended to keep support targeted. A DfT spokesperson told Autocar: “The maximum price limit ensures only eligible cars priced at the lower end of the market can qualify for the discounts, ensuring government support is targeted.”
The scheme, launched in July, forms part of a broader £650 million programme designed to encourage EV adoption and accelerate the transition away from fossil fuels. Beyond pricing, eligibility criteria also include requirements for manufacturers to show commitments to decarbonisation, with battery and vehicle assembly locations considered.
Industry analysts said the revision closes a loophole that allowed premium trims to access subsidies, even when they exceeded the intended affordability threshold. The new price cap is expected to concentrate support on entry-level EVs while keeping incentives for consumers to switch to zero-emission vehicles.
The announcement comes as Ford’s Puma Gen-E and E-Tourneo Courier became the first models to secure the full £3,750 grant. Four additional vehicles – Peugeot’s E-308, Peugeot E-408, DS 3 and DS 4 – qualified for the £1,500 discount, bringing the total number of eligible EVs to 28. More models are expected to be added in the coming weeks.
Source: Autocar