Government cuts plug in car grant

By Ginny Buckley - Motoring Correspondent

22nd Dec 2021 | Reviews


Cars such as the BMW i3 will no longer qualify for the grant
Cars such as the BMW i3 will no longer qualify for the grant

The government grant for electric cars and vans has been slashed by £1,000 from today, and less vehicles are now eligible.

The financial assistance will now be slashed by £1,000 to £1,500 for electric cars and the list price limit for eligibility drops by £3,000 to £32,000.

Grant rates for the Plug in Van Grant will now be £5,000 for large vans and £2,500 for small vans – a cut of £1,000 and £500 respectively. Wheelchair accessible vehicles will retain the £2,500 grant and a higher £35,000 price cap.

The changes came into effect at 7am on 14 December, meaning that those unfortunate to order after that date will not be able to take advantage of the grant. There is also a question mark over a number of vehicle orders made in the last few days that have yet to be logged on the Government eligibility portal.

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 re-focusing 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."

The plug-in grant scheme has supported nearly half a million vehicles over a decade, but its success means that the finite fund is being depleted quickly. More cuts to the grant are expected to follow and the government has warned that it will eventually be phased out.

You can read more motoring advice from Ginny Buckley on the website: electrifying.com

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