- Plug-in Car Grant extended to 2022-23
- Grant reduced to £3000
- Cars above £50,000 excluded from grant
- Grant schemes continue to support vans (up to £8,000), large vans and trucks (up to £20,000), taxis (up to £7,500) and motorbikes (up to £1,500)
THE government has extended the Plug-in Car Grant for electric vehicles in its Budget.
However, the amount available has been reduced by £500 to £3000 effective March 12, 2020.
In addition to the reduction in the grant has been the exclusion of cars in excess of £50,000 – for example cars like the Audi e-tron SUV. Again this is effective March 12, 2020.
The government says that it will allow more drivers to benefit from making the switch for a longer period.
The grant continues to support electric vans up to £8000.
The plug-in car grant, which has been available since 2011, may well reduce further over time, said the government.
The grant rate was originally set at £5000 for all eligible ultra low emission cars. In 2018, the grant was changed to focus on zero-emission cars to the exclusion of PHEVs.
To date the plug-in car grant has provided over £800 million to support the early market for ultra-low emission vehicles, which now represent almost 6% of the new car market.
Ralph Morton is the leading journalist in the leasing broker sector and editor of Broker News, the website which provides information and news for BVRLA-registered leasing brokers. He also writes extensively on the fleet and leasing market in both the UK and Europe.