The UK Government’s new Electric Car Grant (ECG) is a welcome and overdue boost for electric vehicle adoption, one that makes salary sacrifice schemes more appealing than ever for drivers and employers alike.
Offering up to £3,750 off the price of a new electric car under £37,000, this grant reintroduces meaningful financial support for clean transport, and does so in a smarter, more targeted way.
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A two-tier system rewards the lowest-emission models with the highest discounts, while all eligible cars will see the grant applied automatically at the point of sale—no forms, no hassle.
For companies offering EVs through salary sacrifice schemes, this is a game-changer. Combined with existing tax benefits, the grant pushes costs down further, making net-zero motoring accessible to even more people.
Salary sacrifice has already proven to be one of the most cost-effective routes into EV ownership. Drivers benefit from tax-efficient monthly payments, employers improve their green credentials, and the public sees fewer polluting cars on the road. Now, with the ECG in play, the monthly savings grow even more substantial—provided you’re with a provider that knows how to make the most of it.
The best salary sacrifice companies, those worth their salt, will pass these new savings on immediately and transparently. They’ll also offer a broad range of vehicles from multiple manufacturers, ensuring drivers aren’t limited to a handful of eligible models. With the right provider, you’ll see the grant applied seamlessly, with clear pricing and no added complexity.
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By GlobalDataBacked by £650 million in government funding until at least 2028/29, the ECG represents a serious and long-term commitment to decarbonising transport. It builds on the legacy of the now-defunct Plug-in Car Grant but ties funding to sustainability performance, a move that rewards greener engineering and encourages manufacturers to push even further.
This isn’t just about individual drivers saving money. It’s about accelerating the shift away from fossil fuels, and salary sacrifice is playing a crucial role in that transition. When supported by smart government policy like the ECG, and delivered by capable providers, the model offers a win for the environment, for businesses, and for drivers alike.
For those still on the fence about making the switch to electric, this grant might just be the nudge that makes it a no-brainer. The message is clear: go electric now, and do it through a salary sacrifice scheme that delivers real value.
