The UK’s new EV grant: up to £3,750 for employees

Discover how the UK’s new EV grant can help your employees save thousands on electric cars — while boosting retention, ESG impact, and benefits ROI.

Reward and recognition

⋅ 2 min read

The UK government has just supercharged the EV market — and it’s big news for employees and employers alike.

From 16 July 2025 through to the 2028/29 financial year, buyers can get up to £3,750 off eligible electric vehicles priced under £37,000. Backed by a £650 million fund, this isn’t just about cheaper cars — it’s part of a wider push to make electric driving more affordable, accessible, and sustainable.

If you’ve been thinking about going electric, or adding EVs to your benefits package through a salary sacrifice scheme, this is your moment.

Two grant levels that reward sustainability

The grant isn’t one-size-fits-all — it’s designed to push manufacturers towards greener production:

£3,750 off EVs with the highest environmental credentials (low-carbon battery production, verified green supply chains).
£1,500 off for models that meet baseline sustainability criteria.

Manufacturers must prove their eco credentials through a Science Based Target (SBT). So this isn’t just about cleaner driving — it’s about cleaner making.

What makes an EV eligible?

To qualify for the grant, a car must be:

Brand new and priced under £37,000 (before extras)
Zero-emissions at the tailpipe with at least 100 miles range
Backed by an 8-year or 100,000-mile battery warranty
Built by a manufacturer with a verified SBT and compliant carbon intensity levels

In short: clean to run, responsibly made.

Fast, low-admin setup for employers

Adding the EV grant to a salary sacrifice scheme is straightforward:

Dealers apply the discount at the point of sale — no forms for you to process
Government keeps an updated list of eligible models
Your role? Approve the scheme and promote it to your people — minimal HR or payroll lift required

What to Watch Out For

Only EVs under £37k qualify (sorry, no Tesla Model Y)
Not all electric cars meet the sustainability standards
Funding is first-come, first-served — once it’s gone, it’s gone

Why it matters for HR, People & Finance leaders

Deliver a high-impact benefit at low cost

You don’t fund the cars — you facilitate the scheme. That means a meaningful addition to your benefits portfolio without denting your budget.

Drive retention with benefits employees actually use

With living costs high, saving hundreds each month on a car lease is the kind of benefit people remember — and talk about at home.

Hit ESG goals with visible action

This isn’t box-ticking. It’s measurable, high-profile sustainability that supports Scope 3 emissions targets and strengthens your employer brand.

The ROI you can actually measure

Lower NI contributions for your business
Higher employee engagement — uptake can hit 10–30% in year one
Stronger sustainability metrics for your board and investors

Why act now?

From April 2025, ultra-low emission vehicles will still get far better tax treatment than petrol or diesel — but rates will rise gradually. Early adopters secure today’s most generous savings.

How Ben makes it easy

Setting up an EV scheme is one thing. Making it visible, simple, and engaging for employees — that’s where Ben comes in.

With Ben, you can:

Add EV leasing to your benefits hub alongside everything else you offer
Keep the scheme front-and-centre for employees, 24/7
Track engagement and uptake in real time

You get the strategic win. Your people get a cleaner, cheaper, better way to get from A to B.