The government is to offer people between £2,000 and £5,000 to help buy an electric car. The funding is part of the government's strategy to reduce the UK's CO2 emissions.

From 2011, anyone buying an electric or plug in hybrid car will be able to receive help worth between £2,000 and £5,000, depending on the cost of the vehicle they are looking to buy.

To be eligible for the hand-out cars would need to meet modern safety standards and have a large enough range and top speed to make them popular.

Transport Secretary Geoff Hoon said: "Cutting road transport CO2 emissions is a key element to tackling climate change. Less than 0.1 per cent of the UK's 26 million cars are electric, so there is a huge untapped potential to reduce emissions."

"The scale of incentives we're announcing today will mean that an electric car is a real option for motorists as well as helping to make the UK a world leader in low carbon transport."

The government has also provided £20 million to pay for more charging points and related infrastructure to help develop a network of 'electric car cities' throughout the UK.