Government reduces grant for plug-in vans

*

The Government has announced changes to the plug-in grant scheme which it says will enable funding to go further and help more people switch to an electric vehicle.

The grant on large and small vans is reduced from £6,000 to £5,000 and £3,000 to £2,500 respectively.

The grant available for electric cars will fall from £2,500 to £1,500 – half the sum available to buyers at the start of the year. The upper price limit for eligible car models will fall from £35,000 to £32,000, down from £50,000 in March.

 

Industry reaction
Denise Beedell, Public Policy Manager at Logistics UK, comments: “We are disappointed to see reductions for plug-in van grants being brought in without notice and less than a year since the previous plug-in grant rate reduction. 

“Reducing financial support at this time is unhelpful for a sector that is already working hard to decarbonise, while handling significant supply chain and cost pressures. Logistics businesses are determined to move to low and zero tailpipe emissions vans as swiftly and effectively as they can, but the decision to reduce the grants for electric vans under 3.5 tonnes will be detrimental to this transition; we are, however, pleased to see that the grants for larger vehicles (those over 3.5 tonnes) will remain the same.”

According to Government data, plug-in van grant orders in 2021 were over 250% higher than in 2020.

The plug-in grant scheme has supported nearly half a million vehicles over a decade.

 

Scotland
In Scotland, there is different financial support available, including an electric vehicle loan funded by Transport Scotland.

More information on grants and loans available in Scotland can be found on the Energy Saving Trust website. https://energysavingtrust.org.uk/travel/financial-support/grants-and-loans/