Ford leads the way with £3,750 electric car grant with big savings for salary sacrifice drivers

Ford has become the first manufacturer to qualify for the full £3,750 Government electric car grant, with two of its models, the Ford Puma Gen-E and Ford E-Tourneo Courier, eligible under the new scheme.

This announcement is particularly good news for drivers accessing electric vehicles through a salary sacrifice scheme, where the grant combines with tax and National Insurance savings to make EVs even more affordable.

Until now, the Department for Transport (DfT) had approved 22 other electric models, but each received only the lower £1,500 grant. Alongside Ford, four further models, the Peugeot E-308, Peugeot E-408, DS 3, and DS No4, have now qualified for the scheme, though they fall into the £1,500 band.

Lisa Brankin, Ford UK chair and managing director, welcomed the news:

“We’re proud that Ford’s commitment to sustainability has been recognised with the full EV grant. With a £3,750 saving available on the Puma Gen-E, plus the benefits of the Ford Power Promise, we’re making the switch to electric simpler, more affordable and more rewarding.”

In addition to the grant, Ford’s Power Promise offers further support, including a free wall charger worth £899, five years of servicing and roadside assistance, and up to 10,000 miles of complimentary charging.

Why this matters for salary sacrifice drivers

For employees, these incentives stack up on top of the low Benefit-in-Kind (BiK) rate for EVs, making electric cars one of the most cost-effective ways to drive new. Through salary sacrifice, the £3,750 grant directly reduces the monthly rental cost, making models like the Puma Gen-E even more accessible.

Employers also benefit, as the scheme supports sustainability goals, helps attract and retain staff, and contributes towards lowering fleet emissions.

Government grant criteria

The new £650 million Electric Car Grant (ECG) launched in July. To qualify, vehicles must:

• Have a list price of £37,000 or less

• Deliver a range of at least 100 miles

• Be backed by minimum 3-year/60,000-mile vehicle warranty and 8-year/100,000-mile battery warranty

• Come from manufacturers with approved science-based targets (SBTs) and low embodied carbon scores

The greenest models fall into band one (£3,750), while band two cars receive £1,500.

Industry reaction

RAC head of policy, Simon Williams, said:

“This represents a significant saving for drivers which we hope will further stimulate demand and encourage other manufacturers to follow suit.”

More vehicles are expected to be approved in the coming weeks as applications are assessed.

For drivers considering their next car through salary sacrifice, now is an excellent time to explore which models qualify and how much they could save.