0345 811 9595

Christmas Opening Hours

Nationwide Vehicle Contracts takes a look at the government incentives available to UK electric car drivers

Electric vehicles (EVs) have emerged as a promising solution to combat climate change and reduce greenhouse gas emissions. In the United Kingdom, there's a growing emphasis on promoting energy-efficient electric cars. To encourage the adoption of these environmentally friendly vehicles, the government has introduced a range of incentives, grants, and tax benefits, with a particular focus on energy efficiency, measured in miles per kilowatt-hour (kWh). While the number of government incentives currently is notably lower compared to previous years, there are still existing schemes that provide advantages to electric vehicle owners. In this guide, we'll take a closer look at the government incentives available to UK electric car drivers.

Plug-In Car Grant

One of the most well-known incentives for EV buyers in the UK is the Plug-In Car Grant. This scheme provides a discount on the purchase price of eligible electric cars, making them more affordable. However, it's important to note that the grant amount and eligibility criteria can change, so it's advisable to check the latest updates on the government's official website. To encourage energy efficiency, the grant often offers more substantial support for electric vehicles that can travel longer distances on a single kWh, effectively reducing the cost per mile.

Zero-Emission Vehicle Tax Benefits

Electric vehicle owners enjoy several tax benefits, which contribute to the financial attractiveness of energy-efficient models. Firstly, electric cars are exempt from Vehicle Excise Duty (VED), also known as road tax. This exemption applies to all zero-emission vehicles, irrespective of their energy efficiency, but it's a notable cost-saving for EV drivers.

Company Car Tax Incentives

If you use an electric car as a company car, you'll benefit from favourable tax rates. The tax rate for electric company cars is significantly lower than for traditional internal combustion engine (ICE) vehicles. The rate is linked to the electric car's carbon dioxide (CO2) emissions, and electric cars have low CO2 emissions due to their energy efficiency, making them an attractive choice for businesses and their employees.

Energy Efficiency and Miles per kWh

The UK government recognizes the importance of energy efficiency when promoting EVs. Electric vehicles are typically rated in terms of miles per kilowatt-hour (kWh). The higher the miles per kWh, the more efficient the vehicle is in terms of energy consumption. This efficiency not only reduces running costs but also contributes to reducing the environmental impact of EVs. As a result, when incentives are provided for energy-efficient electric cars, the benefits are twofold – savings for the driver and a lower carbon footprint.

Charging Infrastructure Grants

The government has also invested in expanding the charging infrastructure for electric vehicles. This means that not only can you benefit from incentives for buying an energy-efficient EV, but you can also expect greater convenience and accessibility for charging your vehicle. Grants are available for installing home chargers, and public charging stations continue to grow in number.

Local Initiatives

In addition to national incentives, various local authorities and regions in the UK offer their own grants and benefits for EV owners. These can include reduced parking fees, access to bus lanes, and more. It's worth checking with your local council to see if any additional incentives are available in your area.


The UK has made significant strides in promoting energy-efficient electric vehicles. Government incentives, grants, and tax benefits aim to reward EV drivers for choosing energy-efficient models that have a high miles per kWh rating. By embracing these incentives, not only can you reduce your environmental footprint, but you can also enjoy financial advantages while contributing to a cleaner, more sustainable future for the UK.

If you are considering buying an EV, be sure to check the latest information on government incentives to make the most of the available benefits.

For more information, why not check out our The Ultimate Electric Car FAQ? We also produce a range of weekly blogs on various topics, which can be found in the blog section of our website.

Nationwide Vehicle Contracts is one of the UK's leading car leasing brokers and offers a range of leasing deals to suit every need. To find out more, check out our comprehensive car leasing guides or call one of our experts on 0345 811 9595.