The government has announced it is closing the plug-in car grant scheme, with incentives and funding now focused on “the main barriers to the EV transition”. This means funding towards public chargepoint network as well as electric taxis, vans, trucks, motorcycles and wheelchair accessible vehicles.
The government says that while previously confirmed funding until 2022-23 successive reductions in the size of the grant, and the number of models it covers, have had little effect on rapidly accelerating sales or on the continuously growing range of models being manufactured.
Due to this, the government is now refocusing funding towards the main barriers to the EV transition, including public charging and supporting the purchase of other road vehicles where the switch to electric requires further development.
Now £300 million in grant funding will be refocused towards extending plug-in grants to boost sales of plug-in taxis, motorcycles, vans and trucks and wheelchair accessible vehicles, as announced in the autumn statement.
The shift in focus will also help allow government funding to target expanding the public chargepoint network.
All existing applications for the grant will continue to be honoured and where a car has been sold in the 2 working days before the announcement, but an application for the grant from dealerships has not yet been made, the sale will also still qualify for the grant.
Transport Minister Trudy Harrison said: “Having successfully kickstarted the electric car market, we now want to use plug-in grants to match that success across other vehicle types, from taxis to delivery vans and everything in between, to help make the switch to zero emission travel cheaper and easier.”
Toby Poston, Director of Corporate Affairs at the BVRLA, commented: “This move has been well signposted and it is right that the Government prioritises its electric vehicle subsidies towards vans and charging infrastructure, where they are needed most. “Although the grant was small and only a handful of electric vehicles were eligible, its withdrawal will be a symbolic moment that could damage confidence in the fragile EV market. “Most demand for EVs is being driven by the favourable Benefit-in-Kind tax rates available to workers in company car or salary sacrifice schemes. As inflation surges and business and consumer confidence falls, Government needs to maintain these incentives if the country is to have any chance of hitting its ambitious decarbonisation targets.
“Our big concern is for the thousands of drivers that have already ordered EVs in good faith, expecting to get the benefit of the grant. The supply issues that continue to beset the automotive industry mean that many vehicle orders are being delayed or even cancelled. OZEV should review its decision to remove grant eligibility for vehicles delivered more than 12 months after an order was entered on the grant register.”
Keyword: Plug-in grant for electric cars ends with funding to focus on EV barriers