Government cuts electric car grant to £1500

Published 15 December 2021

The Government has slashed the plug-in car grant by £1000 and reduced the maximum price cap, which means thousands of EV buyers will face higher prices for new vehicles.  

From today, 15 December, the Government will provide grants of up to £1500 for electric cars priced under £32,000. Grants for commercial vehicles have also been cut to £5000 for large vans and £2500 for small vans.

The grant for plug-in hybrids has been scrapped altogether. Previously vehicles with CO2 emissions of less than 50g/km and can travel at least 70 miles without any emissions would qualify. 

Motorcycle and moped grants will also change, with the Government now providing £500 off the cost of a motorcycle, and £150 for mopeds.

Electric -car -charging

The move comes less than nine months after the last major change for the plug-in car grant, when the Government lowered the rate to £2500 and reduced the price cap from £50,000 to £35,000.

“This disappointing cut means that only around 20 EV models are now eligible for the grant"

Nicholas Lyes, head of roads policy at the RAC, said: “This disappointing cut means that only around 20 EV models are now eligible for the grant which doesn’t leave a great deal of choice for consumers.

"RAC research suggests that drivers already feel the upfront cost of electric vehicles is too high, so this has to be seen as a step in the wrong direction." 

The plug-in car grant was introduced in 2010 and has supported around half a million vehicles over a decade, with one in 10 new cars now being pure electric. 

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." 

Comments

groaver    on 15 December 2021

Transport Minister Trudy Harrison said:
Boris has to pay for all those parties.

hissingsid    on 16 December 2021

Reducing grant rates to allow more people to benefit? Really?
Once again this government treats us like gullible fools.

primus 1    on 18 December 2021

Great way to get people into electric cars..let’s make em dearer

gavsmit    on 19 December 2021

I don't know why people are bothered about this - car prices are rising by more than this amount every few months, sometimes exceeding this amount when there's a light refresh to use as an excuse.

So with the cost of your average family EV now well into £40k+, any amount of incentive that the government has ever offered is merely a drop in the ocean.

I for one would prefer it if my hard earned tax wasn't funding the profits of overseas car companies - if I want to save the planet, I'll work from home, use a bicycle or walk more.

Mr Robert Bell    on 23 December 2021

I'll just carry on running my 'oh so dependable' diesel car with no complex whatsoever.

Mr Robert Bell    on 23 December 2021

I'll just carry on running my 'oh so dependable' diesel car with no complex whatsoever.

Graham Tucker    on 23 December 2021

Excellent. I’d prefer Hydrogen anyway !

Clarescott    on 23 December 2021

Well that won't encourage people to swap their current diesel or petrol vehicles for all electric!

Keith Moat    on 23 December 2021

Is this to slow the uptake of electric vehicles because they can't keep up on building the infrastructure ?

Loisel    on 23 December 2021

Electric cars are never going to be affordable for the MAJORITY only the MINORITY of the British motorists.
They will only be affordable when the motor manufacturers dramatically reduce the price of electric vehicles.
John Robinson

Richard.Allen.    on 24 December 2021

Electric cars are not very environmentally friendly , they maybe at the point of use , but manufacturing them and possibly causing the destruction of a perfect sound I.C.E. car is most certainly not.It takes around 40,000 miles before an EV offsets it's manufacturing pollution.
Further more I have no desire to fund other people's purchase of these expensive vehicles .I want my money to fund my purchase of a petrol car.
These EV s are extremely heavy many weigh 2,000kgs or more , definitely not very environmentally friendly.
A Kia Picanto or Renault R4 for instance are proper economy vehicles , low weight and low performance all you really need .

Richard.Allen.

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