The UK government's electric vehicle incentive landscape has shifted significantly since the plug-in car grant was abolished in 2022. In 2026, drivers considering an EV need to understand which incentives remain active, which have ended, and what financial benefits are still available. This guide covers all EV incentives still applicable in 2026.

The Plug-in Car Grant — What Remains

The Plug-in Car Grant — which previously offered up to GBP 5,000 towards a new EV — was discontinued for most vehicles in June 2022. As of 2026, no consumer purchase grant is available for new cars. However, some commercial vehicle and van grants remain active through the Office for Zero Emission Vehicles (OZEV).

Despite the withdrawal of the purchase grant, EVs remain financially attractive due to ongoing running cost savings and residual tax benefits.

Road Tax Exemption

Zero-emission vehicles — fully electric cars with no CO2 emissions — are exempt from vehicle excise duty in 2026. This means:

  • GBP 0 annual road tax for all electric vehicles
  • No first-year rate — the exemption applies from the moment the vehicle is registered
  • Over the typical 5-year ownership period, this saves GBP 900 compared to a car in the standard rate band

This exemption shows no sign of being withdrawn in the near future, making EVs financially advantageous for road tax purposes alone.

Company Car Tax — BIK Rates

Company car tax — calculated as a Benefit in Kind (BiK) — is one of the most significant financial advantages of electric company cars in 2026:

  • Electric company cars attract a BiK rate of just 2 percent in 2026 — compared to 37 percent for high-emission performance cars
  • A driver with a GBP 50,000 electric company car pays approximately GBP 1,000 in annual BiK tax versus GBP 18,500 for a comparable petrol car
  • The 2 percent rate is set to increase to 3 percent from 2028, but EVs remain highly favourable

Home Charger Grant — Still Available?

The Electric Vehicle Homecharge Scheme (EVHS) — which offered GBP 350 towards a home charger installation — was closed to new applications in April 2022. In 2026, there is no active government grant for home charger installation for most homeowners.

However:

  • Some energy suppliers offer their own EV charger installation offers
  • Some car manufacturers include free home charger installation with new EV purchases
  • The cost of a home charger installation typically ranges from GBP 500 to GBP 1,500, which can be offset against electricity costs

Workplace Charging Scheme

The Workplace Charging Scheme (WZS) continues to offer support for businesses installing EV chargers. The scheme provides:

  • Up to GBP 350 per socket toward the cost of purchasing and installing EV chargepoints
  • Up to 40 sockets across all sites per applicant business
  • Available to all businesses, charities and public sector organisations

For employees whose employers install workplace charging, this significantly reduces the running cost of an EV.

London-Specific EV Benefits

London offers several EV-specific benefits:

  • Reduced Congestion Charge: EVs are eligible for the lower GBP 10 daily rate (instead of GBP 15) for the Congestion Charge zone if they meet the ultra-low emission criteria
  • Free parking: Some London boroughs offer free or reduced-rate parking for EVs in council car parks — check with your local council
  • Free TfL charging: Some Transport for London car parks include free EV charging points

Vehicle Excise Duty and Alternative Fuel Vehicles

Hybrid vehicles — which combine a conventional engine with an electric motor — do not qualify for the zero-emission road tax exemption. They pay the standard rate of GBP 180 per year, or GBP 170 per year for vehicles registered as alternative fuel. This is significantly less than the road tax for high-emission petrol or diesel cars, but not as favourable as full EVs.

Scotland, Wales and Northern Ireland EV Support

Devolved administrations offer additional EV incentives:

  • Scotland: The Scottish government offers interest-free loans for EV purchases through the Energy Saving Trust, and some local authorities offer free parking for EVs
  • Wales: Some Welsh councils offer free parking for EVs, and the Welsh government funds EV infrastructure
  • Northern Ireland: Northern Ireland offers EV purchase support through its Plugged-in Places scheme and free parking in some areas

Overall Cost of EV Ownership 2026

Despite the withdrawal of purchase grants, the total cost of EV ownership in 2026 is often competitive with petrol and diesel cars when accounting for:

  • Zero road tax
  • Lower fuel costs — charging at home costs approximately 8p to 10p per mile versus 15p to 20p per mile for petrol
  • Lower maintenance costs — fewer moving parts, no oil changes, reduced brake wear
  • Very low BiK rates for company car drivers
  • Higher purchase price — partially offset by lower running costs over time