FOLLOWING an unexpected announcement reducing and restricting grants for electric vehicles, the Government has published a list of vehicles eligible for the new, lower amount.
Announced in the Spring Budget, the government Plug-in Car Grant (PiCG) was cut from £3,000 to £2,500 from 18 March 2021 – and it’s no longer available on models costing over £35,000. Previously, the grant was available for cars up to £50,000.
Any orders confirmed before 11:59 pm on 17 March, remain eligible for the Government grant prior to the update being made. Any EV orders made after 18 March will include the updated government grant, if applicable.
The 2020 Budget confirmed that the PiCG will continue into 2022-23 thanks to a £403 million investment, along with a £129.5 million allocation for the continuation of the Plug-in Van, Plug-in Taxi and Plug-in Motorcycle grants over the same period.
The Department for Transport (DfT) said the changes meant the money available will last longer. It comes ahead of plans to ban the sale of new petrol and diesel cars by 2030.
Transport Minister Rachel Maclean said: “given soaring demand, we are refocusing our vehicle grants on the more affordable zero-emission vehicles – where most consumers will be looking and where taxpayers’ money will make more of a difference.”
At the time of the Budget announcement, Mike Hawes, SMMT chief executive, said the decision to slash the Plug-in Car Grant and Van & Truck Grant was the wrong move at the wrong time.
“New battery electric technology is more expensive than conventional engines and incentives are essential in making these vehicles affordable to the customer. Cutting the grant and eligibility moves the UK even further behind other markets, markets which are increasing their support, making it yet more difficult for the UK to get sufficient supply. This sends the wrong message to the consumer, especially private customers, and to an industry challenged to meet the Government’s ambition to be a world leader in the transition to zero emission mobility.”