The 2026 UK EV Grant Guide: How to Save Up to £3,750 on Your Next Purchase
Introduction
The “Golden Era” of EV incentives didn’t end in 2025—it simply got smarter. As the UK pushes toward its net-zero targets, the government has replaced broad subsidies with the “Plan for Change” initiative. For savvy drivers, this means more money is available than ever before, but the rules have become more specific. Whether you are a private buyer, a renter, or a business owner, here is how to claim your share of the £1.5 billion 2026 incentive pot.
1. The New “Two-Tier” Electric Car Grant (ECG)
The most significant change for 2026 is the tiered purchase grant. Instead of a flat rate, the government now rewards cars based on their “Sustainability Credentials” (how cleanly they were manufactured).
Band 1 (£3,750 Grant): Reserved for cars from manufacturers with verified “Science-Based Targets.” This currently includes the Renault 5 E-Tech, Ford Puma Gen-E, and MINI Countryman Electric.
Band 2 (£1,500 Grant): Available for other qualifying EVs like the Skoda Elroq, Kia EV3, and VW ID.4.
The Price Cap: To qualify, the car must have a starting RRP under £37,000. However, high-spec versions can go up to £42,000 as long as the battery size remains the same as the base model.
Expert View: “This is a win for affordable motoring. By targeting cars under £37k, the government is finally helping the ‘mass market’ driver rather than just luxury buyers.” — ONEEV Finance Desk.
2. Charging Grants: The “Renter’s Rescue”
If you don’t have a private driveway, 2026 is your year. The OZEV Residential Grant has been extended specifically for those in flats or rental properties.
The Incentive: Get 75% off (up to £350) the cost of buying and installing a home charger.
The “Gully” Innovation: For the first time, the grant now covers cross-pavement solutions (like charging gullies). If your council approves it, the government will help pay for the tech that lets you run a cable safely across the sidewalk.
Deadline: Applications for this specific cycle close on March 31, 2026.
3. Workplace Charging Scheme (WCS)
For business owners, the workplace remains the cheapest place for employees to “fuel up.”
The Subsidy: Businesses can claim £350 per socket, for up to 40 sockets across all sites.
Education Bonus: State-funded schools and colleges can now claim even higher rates—up to 75% of costs capped at £2,500 per site.
4. The “Salary Sacrifice” Loophole
This remains the single biggest “secret” in EV savings. By leasing a car through your employer before tax is deducted, you can save between 20% and 50% on monthly costs.
2026 Benefit-in-Kind (BiK): Even though it rose to 3% in 2025 and 4% in 2026, it is still pennies compared to the 37% you might pay on a high-emission petrol car.
Example: A 40% taxpayer leasing a Tesla Model Y via salary sacrifice could save over £4,500 a year compared to a private lease.
5. Road Tax (VED) & The “Luxury” Exemption
Yes, EVs now pay road tax (£195/year), but there is a major 2026 loophole to be aware of:
The £50k Threshold: In a late 2025 update, the government raised the “Expensive Car Supplement” threshold for EVs from £40,000 to £50,000.
The Saving: If your EV is priced at £48,000, you now save £425 per year in “Luxury Tax” that you would have had to pay just twelve months ago.
Summary Table: 2026 EV Incentives at a Glance
| Incentive Type | Value | Best For… |
|---|---|---|
| Band 1 Grant | £3,750 | Buyers of Renault 5, Mini, Ford Puma. |
| Band 2 Grant | £1,500 | Buyers of Kia, Skoda, VW. |
| Renter’s Grant | £350 | Those without a driveway/flat owners. |
| Workplace Grant | Up to £14,000 | Business owners (40 sockets). |
| BiK Tax Rate | 4% (2026/27) | Company car & Salary Sacrifice users. |
Conclusion
Navigating 2026 grants can feel like a full-time job, but the savings are undeniable. By stacking a Band 1 Purchase Grant with a Salary Sacrifice scheme, many UK drivers are getting behind the wheel of a brand-new EV for less than the cost of a used diesel.
Ready to see how much you could save? Download the ONEEV App to find grant-approved installers near you and track your charging rewards in real-time.
ONEEV Grant & Savings Checker 2026
Answer a few quick questions and we will show which 2026 grants or savings routes you may be eligible for, based on the latest UK incentive logic.
Question 1: What is your primary goal?
Question 2: What is the budget (RRP) for the new car?
Question 3: Does the manufacturer have a “Science-Based Target” (SBT)?
Internal note used in logic: SBT list includes Renault, Ford, MINI, Alpine.
