Which cars and vans are eligible for plug-in grants?
- Electric vehicles (EVs) – these run completely on batteries and are plugged into the mains to be recharged
- Plug-in hybrid electric vehicles (PHEVs) – these use a petrol or diesel engine combined with a battery that plugs into the mains to recharge
- Hydrogen fuel cell vehicles and other technologies
- Click here to see which models
A £400 million package to treble the number of ultra low emission vehicles on Britain’s roads has been announced by the Office for Low Emission Vehicles (OLEV).
However, OLEV’s announcement has met a mixed reaction with just two months’ notice that grant levels to each car will be cut.
The changes announced by the government are aimed at creating 100,000 greener drivers.
The funding provides a long-term extension to the plug-in car grant, from March 2016 through to March 2018, to treble the number who have received grants since 2011.
But there is criticism of just two months’ notice that the grants for cars will be reduced and split into two bands, and home charger funding is also to be further reduced.
Grants for vans continue unchanged.
Vehicles with a zero-emission range of more than 70 miles will benefit from a grant of £4,500, whether they are a Peugeot iOn or Citroen C-Zero with net cost around £13,000 or a £60,000+ Tesla S.
Vehicles with a shorter zero-emission range will receive £2,500 provided they cost less than £60,000. Currently, applicants can receive up to £5,000 off the list price of an eligible car.
What you get now (up to February 2016)
- The term ‘plug-in’ applies to any vehicle which can be charged by electricity. The grant covers:
- 35% off the cost of a car, up to a maximum of £5,000
- 20% off the cost of a van, up to a maximum of £8,000
- The ‘cost’ is the full purchase price you pay for the basic vehicle – including number plates, vehicle excise duty and VAT.
New plug-in grants (from March 2016)
- Vehicles with a zero-emission range of more than 70 miles get a grant of £4,500.
- Vehicles with a shorter zero-emission range will receive £2,500 provided they cost less than £60,000.
- Vans unchanged
It means from next March, buyers of the greenest cars save up to £4,500 off the overall purchase price.
Transport Minister Andrew Jones said: “The UK is a world leader in the uptake of low emission vehicles and the plug-in car grant has been key to that success.
“Extending the grant in a sustainable way ensures more than 100,000 people will benefit from financial support when purchasing these cheap-to-run and green cars.
“We are determined to keep Britain at the forefront of the technology, increasing our support for plug-in vehicles to £600 million over the next five years to cut emissions, create jobs and support our cutting-edge industries.”
Jim Wright, Nissan managing director, said: “With government support and Nissan’s investment of over £420 million into electric vehicles in the UK, our British-made Nissan LEAF has increased in popularity with many UK customers already enjoying the benefits of zero emission and low cost driving.
“This announcement, together with ongoing infrastructure developments, should see the growth and wider deployment of this technology continue.”
