In reverse gear? Government confirms cuts to electric vehicle grants

As the CCC calls on the government to strengthen efforts to tackle vehicle emissions, the government announces it is to slash electric vehicle grants by £1,000

The government yesterday announced it is to cut grants for electric vehicles (EVs) by £1,000 from next month and will disqualify a host of plug-in hybrid models from the popular Plug-in Car Grant scheme altogether.

In a controversial move the Department for Transport (DfT) confirmed reforms to the grant scheme will take effect from Friday November 9. It also stressed that further cuts could be imposed if the grants prove more popular than expected.

Under the changes Category 1 electric vehicles (EVs) that boast CO2 emissions of less than 50g/km and a zero emission range of at least 70 miles will see grants cut from £4,500 to £3,500.

Category 2 and 3 cars that have a plug-in range of less than 69 miles will no longer qualify for grants.

The cuts are currently limited to the Plug-in Car Grant (PICG) scheme and do not extend to the government’s separate Plug-in Van and Motorcycle schemes.

In a statement the DfT said the cuts were in response to the falling price of some EVs and were designed to ensure the available budget was focused more effectively on the cleanest new cars.

“The PICG has helped the plug-in hybrid market become more established, and the government will now focus its support on zero emission models like pure electric and hydrogen fuel cell cars,” it said. “The PICG was first introduced in 2011, designed to help stimulate the early market for ultra-low emission vehicles. So far it has supported the purchase of over 160,000 new cars. With plug-in hybrid models like the Mitsubishi Outlander becoming popular among consumers the government is focussing its attention to zero emission models such as the Nissan Leaf and BMW i3.”

It added that tax incentives would continue to remain available for plug-in hybrids.

The move came on the same day as the Committee on Climate Change (CCC) revealed it has written to the DfT and the Department for Business, Energy, and Industrial Strategy (BEIS) to warn the government’s current Road to Zero strategy for decarbonising road transport is not in line with the UK’s carbon targets. The Committee called on the government to introduce a host of new policies to encourage the switch to greener vehicles as a matter of urgency. Specifically, it said Ministers should confirm the future of the Plug-in Car Grant scheme beyond 2020.

Motoring groups attacked the decision to cut the grants, arguing it would undermine one of the few parts of the auto market that is currently growing healthily.

Read more: Business Green

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