Plug-in car grant reduced from £3000 to £2500

Published 18 March 2021

The Government has cut the plug-in car grant by £500. It has also reduced the maximum price cap , which means only cars priced £35,000 or less will qualify for the grant. The changes come into effect immediately (18 March). 

The plug-in car grant allows buyers to claim a Government subsidy when they purchase a new electric car, with the grant automatically deducted from the list price of the vehicle by the dealer. 

The decision to cut the plug-in car grant from £3000 to £2500 has been labelled as "wrong" by Mike Hawes,chief executive of the Society of Motor Manufacturers and Traders (SMMT) and comes at a time when new car sales are struggling amid showroom closures forced by the coronavirus pandemic. 

“The decision to slash the Plug-in Car Grant and Van & Truck Grant is 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,” said Hawes.

"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." 

NMGB-ULEZ-21 

The new price cap, lowered from £50,000 to £35,000, will affect a large number of electric models. However, the number of new electric cars priced under £35,000 has increased by almost 50 per cent since 2019 and more than half the models currently on the market will still be eligible for the grant, including cars such as the MG ZS EV, Nissan Leaf and Volkswagen ID.3 

The changes to the plug-in car grant come just over a year since the last round of changes, when the grant was reduced from £3500 to £3000

The number of new electric cars sold in the UK grew by 344 per cent in 2020, with 21,914 cars registered. Pure electric cars now have a 16 per cent share of the new car market, a figure that is still expected to grow in 2021.

The plug-in car grant was introduced 10 years ago to stimulate the early market for zero emission vehicles. Since 2011, the government has provided close to £1.3 billion in plug-in vehicle grant, supporting the purchase of more than 285,000 vehicles.

Comments

Mr Dave    on 18 March 2021

My feeling is that manufacturers just use the government grant as a “free” discount for them so they can keep the prices artificially high.
This in turn keeps EV prices artificially higher than ICE cars.
Plus, if you can afford £35k plus for a car, another couple of grand won’t influence your decision too much...

Andyvtr    on 18 March 2021

The grant should be reduced to zero with immediate effect. Why should I & other taxpayers who either cannot afford, or do not wish to buy, a car upwards of £18k subsidise buyers who can afford & choose too!

Edited by Andyvtr on 18/03/2021 at 17:50

Paul Shears    on 18 March 2021

Spot on comments here.

Edited by Paul Shears on 18/03/2021 at 21:51

johnbuk    on 18 March 2021

Yes, virtue signal with their own money not mine.

aethelwulf    on 18 March 2021

Shows how much the government really care about EV take up. Zilch. Just think, not that long ago a government was giving a scrappage allowance so that we could buy diesel cars!
Just what a bunch of useless no-hopers we have in successive governments. Still, we vote of them but what else choice do we have?

Robert McAuley    on 18 March 2021

Shows how much the government really care about EV take up. Zilch. Just think, not that long ago a government was giving a scrappage allowance so that we could buy diesel cars! Just what a bunch of useless no-hopers we have in successive governments. Still, we vote of them but what else choice do we have?

Sorry as our family have scrapped twice and never bought a diesel so what are you on?

Robert McAuley    on 18 March 2021

My feeling is that manufacturers just use the government grant as a “free” discount for them so they can keep the prices artificially high. This in turn keeps EV prices artificially higher than ICE cars. Plus, if you can afford £35k plus for a car, another couple of grand won’t influence your decision too much...

Well stated and this reduction won't apply as I don't intend to go electric.

conman    on 18 March 2021

It would have been a good idea that instead of already throwing millions of taxpayers
money at overseas car manufacturers ( the rebate started at £5000) It gave the subsidy to only EV's made in the UK ( USA only provides subsidies to American made EV's) . That would then make jobs and increase manufacturing here. But what do you expect from totally clueless politicians, that think jumpstarting is a se--al position

geoerge    on 19 March 2021

It would seem that when required to take a decision those in control seem to take the wrong one. Perhaps this is due to incompetent advice from those not able to perform the duties for which they are overpaid. I am not sure but I was lead to understand that BMW had experimented with modifying their petrol engines to run on hydrogen gas. The advantage being that the combustion would be water and the wasteful use of low density energy from batteries for larger vehicles would not be necessary



hissingsid    on 23 March 2021

For a while hydrogen was widely spoken of as a possible fuel of the future, but it has all gone ominously quiet. Now the manufacturers are pushing hybrids, which by definition are neither one thing nor the other, and full electrics.

Not everyone was fooled by the now discredited rush for diesel. If there is one thing I have learned in over 50 years driving it is that it never pays to be among the first to buy new technology. Meanwhile I will keep my existing petrol cars and watch developments.

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