Grants for plug-in vehicles cut second time in 2021

Grants for plug-in vehicles cut second time in 2021

Today, 15th December, the government has announced that the grant scheme for zero-emission vehicles has been reduced, purportedly to target less expensive models. According to the government, the measure is intended to enable the scheme’s funding to go further and ensure more people can switch to an electric vehicle (EV).

Going forward, the government will now provide grants of up to £1,500 for electric cars priced under £32,000. This currently applies to around 20 models on the market.

Grant rates for the Plug-in Van Grant will now be £5,000 for large vans and £2,500 for small vans, with a limit of 1,000 per customer per year. According to the government, this will enable a more sustainable grant scheme and help to ensure that taxpayers’ money is distributed more evenly across businesses seeking to transition to zero emission vehicles.

Motorcycle and moped grants will also be changing, with the government now providing £500 off the cost of a motorcycle, and £150 for mopeds, with a price cap on vehicles of £10,000. Almost 50% of mopeds sold this year were battery electric, with some models now at price parity with their internal combustion engine equivalent.

“The market is charging ahead in the switch to electric vehicles. This, together with the increasing choice of new vehicles and growing demand from customers, means that we are refocusing our vehicle grants on the more affordable vehicles and reducing grant rates to allow more people to benefit, and enable taxpayers’ money to go further,” said Transport Minister Trudy Harrison.

“We want as many people as possible to be able to make the switch to an electric vehicle, which is why we will also be introducing new rules to make it easier to find and pay at charge points. This will ensure drivers have confidence in our charging infrastructure, as we look to reduce our carbon emissions, create green jobs and level up right across the UK.”

Earlier this year, in March, the government also reduced the plug-in car grant for electric cars. At the time, the Department for Transport and the Office for Zero Emission Vehicles confirmed that the grant scheme for electric cars, vans and trucks had been updated. The grant was cut to a maximum of £2,500 – down from £3,000 – for electric cars priced under £35,000. Before then, the cap had previously been less than £50,000.

Olly Goodall

Author:Olly Goodall
Date Updated:15th Dec 2021

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