Volkswagen ID.4 and ID.5 now qualify for £1,500 Government-backed electric car grant

Selected Volkswagen ID.4 and ID.5 models now qualify for the UK Government’s £1,500 Electric Car Grant (ECG) bringing down the starting price of both from £36,995 to £35,495.

The ECG was announced in July this year, and is aimed at supporting UK motorists in making the transition from petrol or diesel to electric, and stimulating the new EV market.

Cars qualifying for the grant are divided into two bands depending on a car’s environmental credentials – ‘band one’ cars qualify for a £3,750 discount, while ‘band two’ cars benefit from a £1,500 reduction.

Prior to the VW ID.4 and ID.5 being made eligible for the ECG, the VW ID.3 was the sole Volkswagen to qualify. This meant that VW’s first purpose-built electric car was available for £29,360 with the £1,500 discount applied.

There are three ID.4 models that qualify for the ECG: The entry-level ‘Pure Essential’ trim with a 52kWh battery, the mid-tier ‘Pure Match’ with a 52kWh battery, and the upper-mid level ‘Pro Essential’ with a 77kWh battery.

VW claims a 221-mile range for the smaller battery cars, and up to 339 miles for those with the larger unit. Launched in 2021, the ID.4 was the Wolfsburg-based carmaker’s first all-electric SUV.

The discounted ID.5 is available in two trim levels: Pure with the 52kWh battery, and Pro Essential with the 77kWh battery. After an underwhelming start to life when launched in early 2022, the ID.5 underwent a significant upgrade the following autumn and saw range boosted to 339 miles on bigger battery cars.

Despite the ID.5 discounts, Volkswagen looks set to axe its SUV coupé within the next 18 months due to poor sales. Despite the ID.3, ID.4, and ID.7 consistently ranking amongst some of the best-selling EVs in Europe, the ID.5 never gained as much traction amongst consumers as its siblings.

In 2026, VW will launch its second generation of EVs spearheaded by the ID.Polo. Its following all-electric models next year look set to include the ID.2X crossover and an ID.Polo GTI.