Electric car grant scrapped

Published 14 June 2022

The UK Government has scrapped the electric car grant from today as it looks to 'refocus'  funding by investing in the UK's public charging network. The move means the cost of many new electric cars will increase overnight.

Introduced in 2010, the plug-in car grant was launched to encourage car buyers to switch to alternative-fuelled vehicles, initially offering £5000 off the price of a new electric car or plug-in hybrid.

Since then it has been gradually scaled back. In March 2021 the maximum grant was reduced from £3000 to £2500 while the last change in January this year saw it cut from £2500 to £1500. A move many industry experts called to be reversed.

It has now been scrapped altogether, instead £300m will be put towards plug-in grants to boost sales of plug-in taxis, motorbikes, wheelchair accessible vehicles plus vans and trucks.

However, the Society of Motor Manufacturers and Traders says scrapping the ban sends the 'wrong message' to car buyers. "We are now the only major European market to have zero upfront purchase incentives for EV car buyers yet the most ambitious plans for uptake," says its Chief Executive, Mike Hawes.

"If we are to have any chance of hitting targets, government must use these savings and compel massive investment in the charging network, at rapid pace and at a scale beyond anything so far announced," he added.

>> Cheapest electric cars to buy in 2022

Electric car sales in the UK enjoyed their most successful year in 2021 with more sold than the previous five years combined. Today there are an estimated 477,000 electric cars on the road in the UK and more than 790,000 plug-in hybrids (PHEVs).

Over 11 years, more than 500,000 cars have been bought using the plug-in car grant scheme, with £1.4 billion of taxpayers money spent.

All existing applications for the grant will continue to be honoured and where a car has been sold in the two working days before the announcement, but an application for the grant from dealerships has not yet been made, the sale will also still qualify for the grant.

According to the Department for Transport, the change will allow government funding to 'target expanding the public chargepoint network, helping to eradicate “range anxiety” and ensure the transition to zero-emission transport is easy and convenient for all drivers across the UK'. The government has committed £1.6 billion to building the UK’s public chargepoint network.

Comments

Gary lightfoot    on 16 June 2022

Car manufacturers will need to cut the costs and profits,if they want normal workers to swap,charge the same price as a petrol version.MG EV is similar to petrol version of other similar sized cars

Richard.Allen.    on 16 June 2022

As a taxpayer , I have no wish to subsidize other people's car purchases.I am far from convinced this rush to EV s is environmentally friendly.Scrapping perfectly good ICE cars certainly isn't and building new EV s some weighing 2,000kgs or more isn't either.
EV batteries are immensely heavy even a small EV battery can weigh 350kgs or more and these have to be lugged around all the time. Politicians forcing rapid change is usually not a great idea.
Remember the Blair government pushing diesel cars !!!

hissingsid    on 17 June 2022

Yes I do remember the "dash for diesel" when we were told how much cleaner diesel was than petrol. Not all of us were fooled.
History is now repeating itself. We were told that the economies of scale would bring EV prices down to ICE levels, but instead ICE prices are rising to parity with EV's.

   on 17 June 2022

I have a friend who ordered his EV in December last year with a delivery date in March/April no its going to be October/November the EVs order book is full, why subsidise them?

conman    on 18 June 2022

With a little bit of fine tuning and hyper mileage driving my diesel Astra is returning nearly 80 mpg and with AD blue available on some models there are virtually no harmful emissions.

conman    on 18 June 2022

When there is a 35 billion pound hole in the department of transport caused by politicians that do not have a scooby do, firstly on real life issues and secondly running the country Electricity prices are going to continue to rise because WE don't own our own energy providers, Thatcher sold them all off to foreign countries now we have to pay world prices. The cost of EDF energy prices in France rose 4%, the price of EDF energy price in the UK rose by 150% same nuclear generators.

Scottish Power look on their web site. they produce green energy from uk wind farms since when has the price of wind gone up!!!!

Ofgem are a waste of time, to set the price of energy the find out the dearest price to manufacture electricity and then apply it to all producers, so that is why energy prices are rising, as the prices are being raised by our own government absolutely ridiculous the government should be sorting the cheapest energy to base our prices on not the dearest.

Diane Booth    on 20 June 2022

Still so many people don't get it. We have this decade to half carbon emissions. Since we realised they are causing rapid climate change in the 1990's, we have continued to grow them! There is no Tim we to wait.

ICE cars should be put to rest. We need to stop using fossil fuels now, not in 10 years time. The move to eV and hydrogen are both key in getting transport impacts under control.

EV batteries can be used for energy storage, providing a further decade to work out how to recycle the valuable parts if the batteries.

New batteries need to be designed fir recycling - legislation is needed to drive this.

For readers who will be here at the turn of the century, if everyone keeps on burying their heads, expect to see significant sea level rises, c410m people displaced from their coastal homes and weather you cannot imagine nor can you adapt to. This isn't a drill, it's real it's happening now.

Marcus T.    on 22 June 2022

Whatever we do , it has to be affordable for the average working man. No point in worrying about climate change if you cant afford to get to work to earn and keep a roof over your head and feed your family. EVs are unaffordable for most.

Diane Booth    on 20 June 2022

Still so many people don't get it. We have this decade to half carbon emissions. Since we realised they are causing rapid climate change in the 1990's, we have continued to grow them! There is no Tim we to wait.

ICE cars should be put to rest. We need to stop using fossil fuels now, not in 10 years time. The move to eV and hydrogen are both key in getting transport impacts under control.

EV batteries can be used for energy storage, providing a further decade to work out how to recycle the valuable parts if the batteries.

New batteries need to be designed fir recycling - legislation is needed to drive this.

For readers who will be here at the turn of the century, if everyone keeps on burying their heads, expect to see significant sea level rises, c410m people displaced from their coastal homes and weather you cannot imagine nor can you adapt to. This isn't a drill, it's real it's happening now.

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