Update on plug-in vehicle grants following the budget

Yesterday’s (11 March 2020) budget has announced that that government is providing £532 million for consumer incentives for ultra-low emission vehicles. As part of that:

  • The government will provide £403 million for the plug-in car grant (PICG), extending it to 2022-23
  • Recognising that the market for other ultra-low emission vehicles is still at an early stage of development, the government will also provide £129.5 million to extend the plug-in grants for vans, taxis and motorcycles to 2022-23

Plug in car grant

Starting Thursday 12 March (2020), those making the switch to electric cars will be eligible for a grant of up to £3,000. As the uptake of zero-emission cars increases, a small reduction to the grant, as well as excluding cars costing £50,000 or more will allow more drivers to benefit from making the switch for longer. These changes will come into effect on orders placed on the portal after 11:59pm on 11 March and the government will continue to keep the rate of the grant under review.

Plug in van, taxi and motorcycle grants

Alongside this, the government will also continue to provide grants to support the purchase of zero emission vans, taxis and motorbikes at the same rate as before. The rates of all of the plug-in vehicle grants are subject to review over time, depending on how the market develops.