# 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

## Table of contents

- [Two grant levels that reward sustainability](/content/blog/the-uks-new-ev-grant#two-grant-levels-that-reward-sustainability/index.html)
- [What makes an EV eligible?](/content/blog/the-uks-new-ev-grant#what-makes-an-ev-eligible/index.html)
- [Fast, low-admin setup for employers](/content/blog/the-uks-new-ev-grant#fast-low-admin-setup-for-employers/index.html)
- [What to Watch Out For](/content/blog/the-uks-new-ev-grant#what-to-watch-out-for/index.html)
- [Why it matters for HR, People & Finance leaders](/content/blog/the-uks-new-ev-grant#why-it-matters-for-hr-people-and-finance-leaders/index.html)
- [The ROI you can actually measure](/content/blog/the-uks-new-ev-grant#the-roi-you-can-actually-measure/index.html)
- [Why act now?](/content/blog/the-uks-new-ev-grant#why-act-now/index.html)
- [How Ben makes it easy](/content/blog/the-uks-new-ev-grant#how-ben-makes-it-easy/index.html)

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

1. 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.

2. 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.

3. 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.