Thinking about making the switch to an electric vehicle (EV) for your private hire or delivery work? The UK government just made it a lot easier on your wallet.
A new government scheme, launched in July 2025, is aiming to reduce the cost of leasing or buying a low or zero-emission car. That’s good news for drivers and their pockets, and could save you up to £3,750 off the price of a new electric vehicle (EV).
But why? The government plans to phase out the sale of new petrol and diesel vehicles starting from 2030, and is encouraging drivers to switch early.
Let’s take a closer look at what the grant includes and how it could benefit you as a private hire or courier driver.
The grant is part of a £650 million project designed to make it easier and cheaper to lease or purchase an EV. The grant aims to lower the price of EVs to match the costs of petrol and diesel cars as closely as possible, and is available for three years.
Car manufacturers apply for the grant, which is automatically taken off the sale price.
So far, 37 models of EV have been approved for the discount, with more to be added in the coming months.
The grant is split into two bands, Band 1 and Band 2.
Band 1 receives the largest discount - up to £3,750. The eligible vehicles are:
Band 2 vehicles receive a £1,500 discount. Models include:
Read the full list of eligible vehicles
Not all cars eligible for the Electric Car Grant are accepted by Uber, in particular Band 1 vehicles. Use Uber’s eligible vehicles tool to double-check the makes and models accepted in your city.
Yes.
When you fill out your lease agreement, your dealer or manufacturer will apply for the grant and your monthly repayments will be adjusted accordingly.
Leasing an EV can be a cost-effective way of spreading the cost of the purchase price, while balancing other costs such as your insurance and getting the appropriate licenses for your job.
Because the discount is applied automatically when you lease or purchase, you don’t need to apply.
It’s the responsibility of car makers to apply for the grant. But before they’re approved, they need to make sure their models meet specific standards.
These include:
If you’re a private hire, fast food delivery or courier driver - you could be impacted by initiatives aiming to have fully electric fleets.
For instance, Uber is aiming to have all vehicles on its platform be fully electric by 2030.
By switching early, you could avoid a potential surge in demand as people look to purchase or lease closer to the government's phase-out of fuel vehicles.
Plus EVs save on fuel costs, are cheaper to tax, and qualify for zero or lower congestion charges in city clean-air zones. They also require less maintenance, like fewer oil changes and brake wear. This all means money back in your pocket and getting more from your earnings on the road.
Over time, it’s likely that EV insurance will get cheaper. As more people make the switch to electric vehicles, there will be more providers like INSHUR providing specialist insurance for them. This leads to competition amongst providers wanting to provide the best price. In theory, this is good news for drivers, as they can make the most of any price cuts or deals.
Plus, our insurance covers cables and batteries as standard. Policies also include Social, Domestic & Pleasure use, so you’re protected for work and play.
Additionally, with more EVs comes a larger demand for repairs and people who know how to carry them out. As more mechanics and engineers become trained, repairs should become easier, reducing costs again.
Soon, EV insurance will be the norm, and not bespoke.
Ready to insure your electric vehicle with a policy designed for you? Get a private hire or Uber EV quote with INSHUR today and drive with confidence.
Sources:
RAC - More EV models available under Govt grant
BBC - more models included under Govt EV grant