As of 15 July 2025, the UK government has officially launched a new £650 million EV grant scheme aimed at making electric vehicles more accessible to private buyers. While the headline focus is on individual drivers, the wider impact could be significant for businesses, fleet operators, and salary sacrifice schemes too.
This move comes after a slowdown in EV uptake among private buyers, and the scheme is seen as a key part of helping the UK hit its Net Zero targets.
💷 How the New Grant Works
Under the updated programme, qualifying electric vehicles priced under £37,000 will be eligible for a discount of up to £3,750. The scheme is designed to support more sustainable EV models and make lower-cost, British-built vehicles more appealing to the general public.
Key highlights:
-
Full £3,750 grant for the most sustainable EVs under £37,000
-
£1,500 grant for a wider range of eligible models
-
Discount is applied at point of sale
-
Available to private buyers only
-
Begins 16 July 2025 and runs to 2028/29
Although fleet and business purchases aren't directly included in the grant, there are still plenty of indirect benefits for UK businesses.
🚗 What This Means for Fleets and Employers
While the funding is focused on private buyers, the knock-on effects for fleets and business drivers shouldn’t be underestimated:
1. Bigger Second-Hand EV Pool
As more people buy new EVs with the help of the grant, we’ll likely see more vehicles feeding into the used market over time—great news for fleets that regularly source nearly new stock.
2. Enhanced Salary Sacrifice Value
If an employee takes a new EV through salary sacrifice, a lower P11D value—thanks to the grant—could make the deal even more tax efficient. Combined with the 2% Benefit-in-Kind (BiK) rate, this adds real value for employers and staff alike.
3. Improved Charging Support
Alongside the vehicle grants, the government has also committed £63 million to EV charging infrastructure. This includes funding for home charging points (ideal for grey fleet drivers) and depot-based charging for commercial operators.
🧭 Where Fleet Strategy Goes From Here
For companies still weighing up the move to electric, the market is becoming more favourable again. This grant makes it easier for employees to make the switch and may help to reduce the total cost of ownership for business users over the long term.
At MPH Vehicle Solutions, we see this as another positive step towards a cleaner, lower-emission fleet landscape—especially when combined with the tools already available to businesses, such as:
-
Tailored fleet EV analysis
-
Full salary sacrifice schemes
-
In-life vehicle management for growing EV fleets
📞 Let’s Talk EV Strategy
If you’d like to understand how this grant might impact your vehicle policy, or if now is the right time to introduce EVs into your fleet, we’d be happy to help. We work with businesses across the UK to create fleet plans that are future-proof, cost-effective, and compliant.
📩 Contact MPH Vehicle Solutions today to talk electrification, cost saving, and fleet growth the smart way.