EV Purchase Grants and Scrappage Schemes UK 2026: What's Actually Available
The Plug-in Car Grant for individual buyers ended in 2022, but van and taxi grants continue in narrower form, and several local authorities run their own scrappage schemes tied to Clean Air Zones. Here is what's genuinely available in 2026.
The purchase grant has gone โ the tax incentive hasn't
A common misconception is that buying an electric car in the UK still comes with a government cash discount. It doesn't, for private buyers โ the Plug-in Car Grant ended for private cars in June 2022. What remains is a set of narrower, more targeted schemes (vans, taxis, some local scrappage programmes) plus the much larger ongoing incentive built into the tax system for company cars.
Electric Car Savings Calculator
Compare EV vs petrol running costs across home and public charging.
Open Electric Car Savings calculatorWhat's actually available in 2026: the honest list
| Scheme | Who it's for | Status in 2026 |
|---|---|---|
| Plug-in Car Grant (private cars) | Individual car buyers | Ended June 2022 โ not available |
| Plug-in Van Grant | Commercial van buyers | Continues in narrower form โ check current OZEV cap and eligible list |
| Plug-in Taxi Grant | Taxi purchases | Continues in narrower form โ check current terms |
| Clean Air Zone scrappage schemes | Residents/businesses in specific cities | Local, time-limited, varies by city โ check specific local authority |
| EV Chargepoint Grant | Flat residents without off-street parking, some landlords | Narrower ongoing scheme โ check current eligibility |
| Workplace Charging Scheme | Employers installing staff charge points | Continues โ check current grant terms |
| Company car Benefit-in-Kind incentive | Employees with an EV company car or salary sacrifice scheme | Ongoing โ significantly lower BiK % than petrol/diesel |
Worked example 1: private buyer expecting a grant that no longer exists
Priya assumes she can get a government discount on a new EV, based on outdated information from a few years ago.
| Expectation | Reality in 2026 |
|---|---|
| Plug-in Car Grant discount | Does not exist โ ended 2022 |
| Actual available saving | None from a national purchase grant; potential savings via lower running costs, and BiK savings only if acquired through an employer scheme |
Worked example 2: local scrappage scheme eligibility
Tom lives within a Clean Air Zone city that is running a scrappage scheme, and owns a non-compliant older diesel car.
| Step | Detail |
|---|---|
| Residency/eligibility check | Confirmed within scheme's target area and criteria |
| Scrap old vehicle | Non-compliant diesel scrapped |
| Scheme payment/credit | Cash payment or credit toward a compliant replacement, public transport, or cycling โ exact structure varies by scheme |
Tom's neighbour in a different city with no active scrappage scheme has no equivalent option available, illustrating how postcode-dependent these schemes genuinely are.
Worked example 3: the real EV incentive โ company car BiK
Maria's employer offers an EV salary sacrifice scheme. She compares an EV against an equivalent petrol car as a company car.
| Vehicle | Illustrative BiK % | Approx. monthly tax cost impact |
|---|---|---|
| Petrol equivalent | Considerably higher BiK % | Higher monthly tax cost |
| Fully electric | Significantly lower BiK % | Much lower monthly tax cost |
This BiK differential โ not a purchase grant โ is the main ongoing financial incentive that materially favours EVs in 2026, and it is only accessible through a company car or salary sacrifice arrangement, not for someone buying an EV privately with their own post-tax money.
Car Finance Calculator
Calculate monthly payments for PCP, HP and personal loan car finance. See total cost and interest paid over the term.
Open Car Finance calculatorThe bottom line for a private buyer
If you are buying an EV privately with no employer scheme involved, base your decision on running cost savings (fuel/electricity cost per mile, lower maintenance) and any local scrappage scheme you may genuinely qualify for โ not on an expectation of a national purchase grant, which does not currently exist for private car buyers.
Use the electric car savings calculator to compare real running costs against a petrol equivalent, and the car finance calculator to model monthly costs for an EV purchase without assuming a grant discount.
Frequently asked questions
Is there still a government grant for buying an electric car in 2026?
No, not for private buyers of electric cars specifically. The Plug-in Car Grant, which previously gave buyers a discount on the purchase price of a new electric car, ended for private cars in June 2022. There is no direct equivalent national cash grant for individual car buyers in 2026 โ the main ongoing national incentives instead come through the tax system (favourable Benefit-in-Kind rates for company cars, lower Vehicle Excise Duty bands historically, though EVs now pay standard VED) rather than a point-of-sale grant.
Are there still grants for electric vans or taxis?
Yes, in narrower form. The Plug-in Van Grant and the Plug-in Taxi Grant have continued in various forms for eligible commercial vehicle and taxi purchases, offering a percentage discount up to a capped amount on qualifying vehicles, though the exact percentage, cap, and eligible vehicle list are reviewed and can change โ check current OZEV (Office for Zero Emission Vehicles) guidance for the live scheme terms.
What is a Clean Air Zone scrappage scheme?
Several UK cities with Clean Air Zones or low-emission zones (such as Birmingham, Bristol, and previously London's ULEZ expansion) have run local scrappage schemes, offering a cash payment or credit toward a compliant replacement vehicle (or towards public transport, cycling, or car club credit) in exchange for scrapping an older, non-compliant vehicle. These are locally administered, time-limited schemes, not a permanent national programme, so availability and terms vary significantly by city and by year.
Do I need to live in the zone to qualify for a Clean Air Zone scrappage scheme?
Usually yes, or at least meet specific residency, low-income, or vehicle-use criteria set by the specific scheme โ most local scrappage schemes are targeted at residents, small businesses, or specific vulnerable groups within or near the relevant zone, rather than being open to anyone nationally. Check the specific local authority's scheme rules, since eligibility criteria differ meaningfully between cities.
What can I get through a typical scrappage scheme?
Typical structures include a cash payment for scrapping a non-compliant vehicle, a larger payment or discount specifically toward a compliant replacement vehicle (which may include EVs, hybrids, or simply newer compliant petrol/diesel vehicles depending on the scheme), or credit toward public transport passes, cycling equipment, or car club membership as an alternative to vehicle ownership altogether.
Is a home charge point grant still available?
The previous Electric Vehicle Homecharge Scheme, which subsidised home charge point installation for private driveway owners, was closed to new applicants in most of its original form some time ago, though a narrower EV Chargepoint Grant has continued for some flat/apartment residents without off-street parking and some landlords, alongside a separate Workplace Charging Scheme grant for employers installing charge points for staff โ check current OZEV guidance for exact current eligibility, since these schemes are reviewed periodically.
Are there tax benefits for EVs even without a purchase grant?
Yes โ the main ongoing incentive is now through Benefit-in-Kind tax for company cars, where fully electric vehicles attract a significantly lower BiK percentage than petrol or diesel equivalents, making salary sacrifice EV schemes and company car EVs considerably cheaper in take-home-pay terms than an equivalent combustion vehicle, even without a direct purchase grant.
Does VAT apply differently to EVs?
No โ standard VAT rules apply to EV purchases in the same way as any other vehicle; there is no VAT-specific EV purchase incentive. Any VAT reclaim on a business-purchased EV follows the same general rules (generally restricted for cars available for private use, more flexible for vans) as for any other vehicle type.
Should I wait for a new national EV grant before buying?
There is no indication of a return to a broad, national point-of-sale grant for private EV buyers as of 2026 โ policy support has shifted toward the tax system (BiK, salary sacrifice) and targeted local/commercial schemes rather than a universal cash discount. Buyers should base a purchase decision on currently available incentives (BiK savings if via an employer scheme, local scrappage scheme eligibility if applicable) rather than anticipating a new national grant.
Try the calculators
Related reading
Historic Vehicle VED Exemption: The 40-Year Rule Explained 2026
A vehicle built more than 40 years before 1 January of the current year is exempt from Vehicle Excise Duty (road tax) in the historic vehicle tax class. Here is how the rolling 40-year rule works in 2026.
Learner Driver Insurance Cost 2026: Short-Term vs Named Driver
Short-term learner driver insurance for a few weeks of practice can cost less than adding a learner to a parent's policy for a full year โ but which is cheaper depends on how much you drive. Full 2026 comparison.
Moped CBT Cost and Insurance UK 2026: The First-Year Budget
A CBT course costs roughly ยฃ100-ยฃ150, but insurance for a first-time young rider on a moped can cost more than the moped itself. Here is a realistic first-year budget for 2026.