Government electric vehicle grant updated

The government has updated its grant scheme for zero-emission vehicle to target less expensive models, allowing the scheme to help more people buy electric vehicles.

The plug-in grant scheme, supported nearly half a million vehicles over a decade, has helped kickstart a market that is now moving forward at pace with over one in 10 cars sold in 2021 – over 150,000 – having a plug. Electric vehicles are becoming more affordable as the market has expanded and demand is increasing.

From today the government will provide grants of up to £1,500 for electric cars priced under £32k, with around 20 models on the market. Support for wheelchair accessible vehicles is being prioritised, with these retaining the £2,500 grant and a higher £35k price cap.

Plug in Van Grant orders in 2021 are already over 250% higher than in 2020, demonstrating the strong shift to an electric future.

Grant rates for the Plug in Van Grant will now be £5k for large vans and £2.5k for small vans, with a limit of 1,000 per customer per year. This will enable a more sustainable grant scheme and will ensure that taxpayers’ money is distributed more fairly across businesses seeking to transition their vehicles to zero emission.

Transport Minister Trudy Harrison said: “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.

“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 chargepoints.

The Minister concluded: “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.”

The total funding committed by this government to support the transition to zero emission vehicles is £3.5bn.

This includes recent investments like an additional £350m to support the electrification of UK vehicles and their supply chains, as part of the government’s £1bn commitment, and a further £620m for targeted electric vehicle grants and infrastructure, with a focus on local on-street residential charge points.