New discounts of up to £3,750 on new electric cars - how to claim yours

Motorists can get a discount of up to £3,750 when they buy a new electric car as part of a government plan to get petrol and diesel vehicles off the roads. Transport Secretary Heidi Alexander is announcing that £650million has been set aside for grants that will be available at the point of sale for eligible models priced at £37,000 or less.

It follows warnings from carmakers that their businesses are suffering as a result of the Government's commitment to phase out the sale of new petrol and diesel cars by 2030, because motorists are reluctant to switch to electric models. The aim is to reduce the price difference between expensive electric vehicles and cheaper combustion engine cars.

Transport Secretary Heidi Alexander said: "This electric vehicle grant will not only allow people to keep more of their hard-earned money - it'll help our automotive sector seize one of the biggest opportunities of the 21st century.

"And with over 82,000 public chargepoints now available across the UK, we've built the infrastructure families need to make the switch with confidence."

The scheme launches on July 16 and manufacturers must apply to be included. The discount will be applied when the vehicle is sold, and the buyer will not need to carry out any paperwork.

The Society of Motor Manufacturers and Traders, which represents firms employing tens of thousands in Britain, such as Nissan, Jaguar Land Rover and Mini, last month warned they were struggling to sell electric vehicles.

It warned in a report: "The UK has set some of the world's most ambitious decarbonisation targets to meet its net zero commitments, placing the greatest burden and expectations on the automotive sector. However, organic market demand has not kept pace with this ambition."

While the full ban on new petrol cars has not yet come into force, manufacturers are already obliged to ensure a proportion of the cars they sell are electric. But they have been forced to offer discounts totalling £6.5billion to encourage motorists to buy the vehicles.

The new discount is the latest government effort to help carmakers. Others have included stepping up the creation of electric vehicle chargepoints across the country. Ministers have stood firm against calls to delay or abandon the ban on new petrol or diesel cars.

RAC head of policy Simon Williams said: "Within weeks, discounted cars should start appearing at dealerships across the country. And, as the biggest savings will be given to cars with the strongest 'green' manufacturing credentials, drivers will be picking models that are not only better for their wallets, but better for the planet too.

"This is further welcome news following last week's announcement about more funding for pavement gully charging solutions that will enable those without driveways to charge an EV at home. Together, these initiatives should mean more drivers than ever start benefiting from the lower costs of running an electric car."

Vicky Read, chief executive of ChargeUK, said: "This announcement is brilliant news - for drivers and for the UK's transition to electric vehicles.

"With a commitment to invest £6billion through to 2030, the UK's charging industry has rolled out infrastructure ahead of demand to ensure that when drivers switch, the network is there to make charging as convenient as possible. There are now 82,000 public charge points, and a new one goes in the ground every 29 minutes on average.

"Hot on the heels of the weekend's announcement on measures to support charging, including meeting ChargeUK's calls for improvements to signage on main roads, today's package is another vital boost to the charging industry, helping it invest with confidence."