Not a single driver will be eligible to receive Labour’s flagship £3,750 electric vehicle (EV) grant, analysis shows.
Labour’s flagship £3,750 electric vehicle (EV) grant will not be paid out to a single driver, analysis shows.
The net zero scheme, which was announced in mid-July, begins making payouts to manufacturers from this week.
However, only 22 car models are eligible for the grant, but none of them qualify for the full headline subsidy. Drivers of vehicles including the Renault Megane and Vauxhall Astra Electric instead receive a smaller payment of £1,500.
Just two EVs – Citroen e-C5 Aircross and Nissan Leaf – are likely to be eligible for the full grant but neither is currently on the market.
There are more than 130 EV models on sale in Britain, according to the Society of Motor Manufacturers and Traders (SMMT). It has led to concern among industry leaders that the grants, which come at a £650m cost to taxpayers, are failing to convince motorists to give up petrol cars.
Ginny Buckley, chief executive of advice website electrifying.com, told The Times: “Labour’s electric car grant sounded like a game-changer… But as the weeks have passed, the reality has been far less impressive.
“Far from boosting confidence, the rollout has created confusion among buyers and carmakers alike, slowing sales as would-be EV owners sit on their hands, waiting for clarity.”
The Government originally promised the scheme would reduce the purchase cost of a new EV by up to £3,750 for vehicles priced up to £37,000. Car makers are invited to apply to take part, with models vetted against eligibility criteria. However, carmakers have criticised this for not being transparent enough.
The requirements can include where the vehicles are manufactured and emissions targets that car brands are encouraged to sign up to, though few car models have succeeded in qualifying for the full grant.
Paul Barker, of magazine Auto Express, said it was “incredible” that no EVs had been deemed eligible for the full grant and explained how certain vehicles might fail to meet standards set by Whitehall officials.
“It’s not clear from the outside how calculations are being worked out. Even manufacturers don’t seem to know how close they are to the higher grant and while they can reapply if things change, like sourcing batteries from a different country, there’s little transparency on why a car only gets the lower rate.”
He added: “If it’s down to where batteries are made, coal versus nuclear, for example, the real test will be the UK-built Nissan Leaf. If that’s not eligible, nothing will be”
The grants were intended to boost uptake of EVs by drivers, and help manufacturers hit legally-binding sales targets. Most electric alternatives to petrol and diesel cars are so-called “fleet” vehicles which are bought by businesses.
In 2024 there were 381,970 electric vehicles sold, although just under 20pc were purchased by private buyers and over 80pc bought by corporate customers.
Neil McCue, the director of Snows, a car dealership, described the Government’s EV grant scheme as “ill thought out”.
He said: “We have seen customers holding off buying electric cars in July and we’re seeing it again in August. They’re all asking for their £3,750 discount and we can’t give it to them.”
A government spokesman said: “We expect dozens of models to be eligible for the electric car grant, with 22 models announced to date and many more to come, providing a substantial boost for the industry and saving drivers thousands of pounds.
“The list of eligible models is published online and regularly updated with discounts available for the public at dealerships. We have also published comprehensive guidance for manufacturers, which we will continue to work with alongside dealers to help more of their customers access the grant.”
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