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Government plug-in car grant slashed to 拢1,500, price threshold reduced to 拢32,000

December 15, 2021 by

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The government鈥檚 plug-in car grant has been cut from 拢2,500 to 拢1,500, and is now only available for electric vehicles costing 拢32,000 or less.

  • Government鈥檚 plug-in grant cut to 拢1,500
  • Previously covered 拢2,500 towards a new electric vehicle
  • EVs eligible must now cost 拢32,000 or less
  • Previously available for cars under 拢35,000
  • No longer applies to plug-in hybrid vehicles
  • Change comes into effect immediately

Previously, you could claim 拢2,500 towards the price of a new electric vehicle costing 拢35,000 or less. Now, you鈥檒l only be able to claim a maximu of 拢1,500, and the grant is only available on new electric cars costing 拢32,000 or less.

Previously the grant was also available for vehicles that emitted less than 50g/km of CO2 and be capable of driving for at least 70 miles without producing any emissions. No cars in the UK met these requirements anyway, but this too has been scrapped 鈥 with the grant available exclusively to electric vehicles.

Trudy Harrison, Transport minister, said: 鈥淭he 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鈥 money to go further.鈥

This is the second change to the plug-in grant in 2021. The first came in March, when the grant was reduced from 拢3,000 to 拢2,500.

Wheelchair-accessible electric cars will continue to be eligible for a 拢2,500 grant, however, with the 拢35,000 cap remaining for these vehicles too.

Grants for plug-in vans are changing as well. This will now be a maximum of 拢5,000 for large vans and 拢2,500 for small vans, with a cap of 1,000 grants per customer annually. These stood at 拢6,000 and 拢3,000 previously.

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