Plug-in vehicle grants reduced

From 15 December 2021, the government is making the following reductions to the grants made available for certain electric vehicle purchases.

  • It will provide grants of up to £1,500 (previously £2,500) for electric cars priced under £32,000. There are currently around 20 models on the market that would qualify for this grant.
  • Support for wheelchair accessible vehicles is being prioritised, with these retaining the £2,500 grant and a higher £35,000 price cap.

Grant rates for the Plug in Vans will now be:

  • £5,000 for large vans and
  • £2,500 for small vans, with a limit of 1,000 per customer per year.

According to government sources, Plug in Van Grant orders in 2021 are already over 250% higher than in 2020.

Motorcycle and moped grants will also be changing, with the government now providing £500 off the cost of a motorcycle, and £150 for mopeds, with a price cap on vehicles of £10,000. Almost 50% of mopeds sold this year were battery electric, with some models now at price parity with their internal combustion engine equivalent.

The government’s total investment in the EV transition remains unchanged following these changes, although total money invested in these grants will depend on the publics’ reaction.

If grant funding is reduced this will increase the price of a new, qualifying EV vehicle. Logic would predict that if the price increases, demand will drop.

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