The UK government has announced the reintroduction of an Electric Car Grant scheme aimed at boosting electric vehicle (EV) sales and supporting the country’s net zero emissions targets. Starting Wednesday, buyers of new electric cars priced under £37,000 will be eligible for discounts of up to £3,750. The scheme is backed by a £650 million fund and is designed to make EVs more affordable, particularly for lower-income drivers. The grant will be tiered, with the most environmentally sustainable models receiving the highest discounts. Over 30 models qualify under the scheme, though some popular models like the Tesla Model Y, which starts at £45,000, are excluded due to the price cap. The grant marks a policy shift from the previous Conservative government, which scrapped EV incentives in 2022. The Labour government views the move as a way to bolster the UK auto industry and accelerate the transition away from petrol and diesel vehicles. Transport Secretary Heidi Alexander and Minister for the Future of Roads Lilian Greenwood have both emphasized the importance of closing the affordability gap for EV adoption. The scheme has received support from major car brands and climate advocates, while some critics highlight concerns about the scheme’s reach given that about 70% of EVs exceed the price limit and eligibility criteria tied to carbon intensity further narrow the pool of qualifying vehicles.