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The government has reduced the financial incentive package offered to electric vehicle owners in the UK, reducing the ‘plug-in car grant’ from £ 3,000 to £ 2,500 and lowering the upper price cap for eligible vehicles.
Buyers of electric cars that cost more than £ 35,000 will now no longer qualify for an incentive, which was previously available on vehicles that cost up to £ 50,000. The changes will take effect immediately from today (March 18).
The move has been made, according to the government, to “reflect a wider range of affordable vehicles available” and to help finance go further as more drivers switch to electric cars.
The government said: “This will mean that the funds will last longer and be available to more drivers. The grants will no longer be available for higher priced vehicles, generally purchased by drivers who can afford to switch without a subsidy from taxpayers.”
Since 2019, the government claims, the number of pure electric cars under £ 35,000 on the market has increased by “almost 50%”. It is estimated that more than half of the models currently on the market will remain eligible for the £ 2,500 support package, highlighting the ‘roomy family cars’, including the MG ZS EV and the Hyundai Kona Electric, although the Kona Electric now it is eligible exclusively at the entry level. Form 39kWh.
MG itself has pledged to continue to offer the full £ 3,000 discount on all EVs ordered before the end of the month, as a goodwill gesture to any potential customer who has decided to purchase an MG with the amount of the previous grant in mind.
Until this time last year, all electric cars were eligible for a government grant of £ 3,500. It was reduced by £ 500 and limited to cars under £ 50,000 as part of the 2020 budget, at which point it was said that funding had been secured to run the scheme until 2022-2023.
The latest reduction has been made in an effort to preserve that schedule and the government has said it will continue to revise the scheme in line with “further price reductions on electric vehicles,” suggesting that another reduction is expected, likely in March 2022. .
Transport Minister Rachel Maclean said: ‘We want as many people as possible to be able to make the switch to electric vehicles as we seek to reduce our carbon emissions, strive for our net zero ambitions and level up across the UK. “.
“The increasing choice of new vehicles, growing customer demand and the rapidly increasing number of charging points mean that while the level of financing remains as high as ever, given growing demand, we are reorienting our Vehicle Grants on the Most Affordable Zero Emission Vehicles – Where Most Consumers Will Look and Where Taxpayers’ Money Will Make the Biggest Difference. “
The government said it has provided £ 1.3 billion in subsidies to buyers of around 285,000 plug-in vehicles since 2011. Originally, the scheme included plug-in hybrid vehicles, but was restricted to pure electric models in 2018 in line with an uptick in sales. electric vehicles. availability and popularity of automobiles.
