Referral of the proposed Electric Car Grant subsidy scheme by the Office for Zero Emission Vehicles
The Subsidy Advice Unit (SAU) has accepted a request for a report providing advice to the Office for Zero Emission Vehicles (OZEV) concerning its proposed Electric Car Grant subsidy scheme.
Administrative timetable
| Date | Action |
|---|---|
| 24 March 2026 | SAU’s report to be published |
| 24 February 2026 | Deadline for receipt of any third-party submissions |
| 10 February 2026 | Beginning of reporting period |
Request from OZEV
10 February 2026: The SAU has accepted a request for a report from OZEV concerning the proposed Electric Car Grant subsidy scheme. This request relates to a Subsidy Scheme of Particular Interest.
The SAU will prepare a report, which will provide an evaluation of OZEV’s assessment of whether the subsidy scheme complies with the subsidy control requirements (Assessment of Compliance). The SAU will complete its report within 30 working days.
Information about the scheme provided by OZEV
The Government has committed £2 billion to support the transition to electric vehicles through the Electric Car Grant (ECG). The ECG reduces the upfront cost of zero emission vehicles that meet specific environmental and technical criteria, making them more accessible to a broader range of consumers. The referred scheme is a continuation of an existing scheme that was launched in July 2025, and it will continue until the end of the 2029 to 2030 financial year, or until budgets are exhausted.
The ECG offers grants of up to £3,750 for those purchasing eligible electric vehicles that are priced at or below £37,000. The grant amount available for specific vehicles are based on sustainability criteria, with the greenest vehicles in band one receiving up to £3,750 and band 2 vehicles receiving up to £1,500. Vehicle dealerships will apply the grant to eligible vehicle orders, and grants will be paid to the manufacturer who will enter into a legal agreement with the Government and pass on the discount to the end customer.
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ECG announcement press notice: https://www.gov.uk/government/news/discount-of-up-to-3750-on-electric-cars-set-to-slash-costs-for-thousands
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ECG Vehicle Eligibility Guidance: https://www.gov.uk/government/publications/how-to-apply-for-vehicle-eligibility-for-the-electric-car-grant/how-to-apply-for-vehicle-eligibility-for-the-electric-car-grant
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ECG Eligible Vehicle List: Electric and hybrid vehicles eligible for a plug-in grant: Cars - GOV.UK
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Further information on EVs: Get an electric vehicle - Clean Energy Homepage
Information for third parties
If you wish to comment on matters relevant to the SAU’s evaluation of the Assessment of Compliance concerning the proposed Electric Car Grant subsidy scheme, please send your comments on the date stipulated in the timetable above. For guidance on representations relevant to the Assessment of Compliance, see the section on reporting period and transparency in the Operation of the subsidy control functions of the Subsidy Advice Unit.
Please send your submissions to us at sau-electriccargrant2026@cma.gov.uk, copying the public authority: ecgapplications@ozev.gov.uk.
Please also provide a contact address and explain in what capacity you are making the submission (for example, as an individual or a representative of a business or organisation).
Notes to third parties wishing to make a submission
The SAU will only take your submission into account if it can be shared with OZEV. The SAU will send a copy of your submission to OZEV together with its report. This is to allow the public authority to take account of the submission in its decision as to whether to grant or modify the subsidy scheme or its assessment. We therefore ask that you provide express consent for your full and unredacted submission to be shared. We also encourage you to share your submission directly with OZEV using the email address provided above.
The SAU may use the information you provide in its published report. Therefore, you should indicate in your submission whether any specified parts of it are commercially confidential. If the SAU wishes to refer in its published report to material identified as confidential, it will contact you in advance.
For further details on confidentiality of third party submissions, see identifying confidential information in the Operation of the subsidy control functions of the Subsidy Advice Unit.
Contacts
- SAU project team: sau-electriccargrant2026@cma.gov.uk
- CMA press team: 020 3738 6460 or press@cma.gov.uk