The UK government’s effort to accelerate the shift toward electric vehicles (EVs) took a notable step forward this week, as five new EV models were added to the national Electric Car Grant scheme. This expansion, announced on August 15, 2025, brings the total number of eligible discounted cars to 22, offering consumers a £1,500 discount on select vehicles from Volkswagen, Cupra, and Peugeot. The move is part of a broader £650 million government investment to support the country’s transition away from petrol and diesel vehicles and to bolster the UK’s ambitious green targets.
But as with many government initiatives, the rollout hasn’t been without its share of bumps and bruises. While the new discounts are designed to make EVs more accessible and affordable, both drivers and dealers are expressing frustration over the scheme’s complexity and the slow, piecemeal way in which new models are being approved for the grant. Some are even calling the process “shambolic,” blaming it for confusion and a slowdown in private EV sales at a time when momentum is desperately needed.
For now, the five newly eligible models are the Cupra Born (advertised at £37,460), Volkswagen ID.3 (priced at £30,860), and three Peugeots—the e-208, e-2008, and e-Rifter—ranging from £20,245 to about £35,000. All these cars qualify for the lower Band 2 discount of £1,500, rather than the full £3,750 Band 1 subsidy reserved for the most sustainably manufactured EVs. According to the Daily Mail, every car approved so far has only qualified for the £1,500 allowance, despite the scheme’s two-tier structure introduced on July 14, 2025.
The grant’s two bands are a source of much confusion. Band 1, which offers the largest discount of £3,750, is reserved for EVs that meet strict emissions and sustainability criteria—including the carbon footprint of battery manufacturing and the electricity grid used in production. Band 2, meanwhile, offers a £1,500 discount to models that fall short of these standards. As of mid-August, none of the 22 approved models have qualified for the higher Band 1 grant, leading some buyers to delay purchases in hopes of a better deal down the line.
Dealers have not been shy in voicing their frustration. As reported by Car Dealer magazine, Peter Smyth, director of retailer group Swansway, called the rollout “shambolic,” describing it as a “typical government bureaucratic mess.” Other retailers echoed his sentiment, pointing to a “logjam of customers” waiting for clarity on which models will ultimately be eligible for the full grant. The staggered announcement of qualifying vehicles—rather than a comprehensive list from the outset—has only intensified consumer uncertainty, with some motorists even demanding the full £3,750 discount in showrooms, according to This is Money.
Adding to the confusion, several car manufacturers have launched their own grant schemes, matching the government’s £1,500 discount in anticipation of official approval. Volkswagen, for example, has been offering a £1,500 “Grant Guarantee” on the ID.3 since August 4, 2025, with a limited number of ID.4s included as well. Peugeot, meanwhile, is underwriting the grant on its e-408, e-308, e-308 SW, and e-Traveller models, even though only the e-208, e-2008, and e-Rifter have so far been officially approved for the government scheme.
The Department for Transport (DfT) insists it is processing applications as quickly as possible, using a first-come, first-served approach. “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,” a DfT spokesperson told the Daily Mail. The list of eligible models is published online and regularly updated, and the DfT says it has provided comprehensive guidance for manufacturers and dealers to help more customers access the grant. Importantly, the department emphasizes that consumers themselves don’t need to do any paperwork to receive the discount.
The surge in EV registrations suggests that, despite the confusion, interest in electric vehicles is growing. According to government figures, over 120,000 zero-emissions cars were registered in the UK between January and March 2025—a 43% increase compared to the same period in 2024. Electric vehicles accounted for one-fifth of all car registrations in the first quarter of 2025, up by three percentage points from the previous year. This rapid growth has helped the UK secure its place as Europe’s largest EV market in 2024, as noted by Tech Digest.
Behind the numbers, however, is a more nuanced story. The government’s £650 million investment isn’t just about car discounts; it also includes a £63 million package for expanding the UK’s charging infrastructure. Of this, £25 million is earmarked for local at-home charging, and there are now more than 83,000 public chargepoints across the country. The hope is that a robust charging network will give drivers the confidence to make the switch, addressing one of the main barriers to EV adoption.
The government’s commitment to “put money back into people’s pockets” and “create the jobs and growth that will drive Britain forward,” as Transport Secretary Heidi Alexander put it, is clear. But the road to a fully electric future is proving to be anything but smooth. Environmental critics, for example, point out that the production of EV batteries requires mining precious metals, which comes with its own set of ecological challenges. Meanwhile, the industry’s reliance on batteries produced in countries with high-carbon electricity grids has made it difficult for many models to qualify for the top-tier grant.
For now, the DfT assures the public that more models will be added to the grant scheme as manufacturers submit applications and meet the necessary sustainability benchmarks. The process, though, remains a work in progress. As the list of eligible vehicles grows and the infrastructure improves, the government hopes that the UK’s EV market will continue its upward trajectory—eventually making electric cars the norm rather than the exception.
It’s a complicated dance between policy, industry, and consumer demand, but one thing’s for certain: the electric revolution in Britain is well underway, even if the journey is a bit bumpier than some had hoped.
