Latest News on Plug-in Grants

By Benchmark
19-03-2021
Latest News on Plug-in Grants

Latest News on Plug-in Grants


The Government have a Plug-in Car Grant scheme in place to help reduce the purchase price of EVs. It was introduced ten years ago to stimulate the market for zero emission vehicles. Since 2011, nearly £1.3 billion in plug-in vehicle grant funding has been provided.

Prior to 18th March 2021 the maximum grant available for an electric car was £3,000, and £8,000 on vans. However, an immediate change to the rates and eligibility criteria for all Plug-in Grants has now been announced.


• The maximum Plug-in Car Grant has been cut from £3,000 to £2,500 and now excludes models that cost more than £35,000.

• The maximum Plug-in Van Grant has been cut to £3,000 for small vans and £6,000 for large vans (2.5t-3.5t GVW).

• The Plug-in Truck Grant, which had provided funding of up to £20,000, has been cut to £16,000 for trucks up to 12.5t GVW, and increased to £25,000 for trucks over 12.5t.


No notice was given about the change, the Government reasoning that it would not have the financial reserves to cope with an upsurge in demand for grants if the date of change had been known in advance.

The grant scheme has been updated to help promote less expensive models. The aim is to allow the scheme’s funding to go further and help more people make the switch to an electric vehicle. Grants will no longer be available for higher-priced vehicles, typically bought or leased by drivers who can afford to switch without a subsidy from taxpayers. More than half the models currently on the market will still be eligible for the grant.


The Office for Zero Emission Vehicles (OZEV) has confirmed that it is allowing dealers and vehicle manufacturers to claim for any orders that were placed by customers in the 28 days before the change.


Commenting on today’s announcement, BVRLA Chief Executive Gerry Keaney said:

“Given the surge in battery electric vehicle adoption, it makes sense for the government to reconsider where and how it uses grants and incentives, but today’s move is poorly timed and will slow down the transition to zero emission motoring."