Plug-in Grant Update

March 19, 2021

Changes to the Plugin Grant Scheme

The UK Government has today made immediate changes to the eligibility criteria for the Plug-in Car and Van grants, as follows:

  • The Plug-in Car Grant has been cut from £3,000 to £2,500 and excludes all models that cost more than £35,000.
  • The Plug-in Van Grant has been cut to a maximum of £3,000 for small vans and £6,000 for large vans (2.5t to 3.5t Gross Vehicle Weight).

When does the change come into effect?

The new changes are effective from 7am on the 18th March 2021 however, dealers and vehicle manufacturers can still claim the original amounts for any orders that were placed by customers in the 28 days before today’s change.

BVRLA Comments

Gerry Keaney, BVRLA Chief Executive:

“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.

“Confidence in electric vehicles and their running costs is fragile, so slashing the grants and eligibility criteria will put a brake on the fantastic market momentum we have seen in recent months. This will come as a particular blow for the commercial vehicle sector, where BVRLA members have been working so hard to drive uptake of electric vans and trucks.

“Coming just months before the COP 26 summit and as other countries are increasing their zero emission subsidies, this move could also have a big impact on the supply of electric vehicles coming into the UK.”

Price Cap Details

OZEV has said that the £35,000 RRP Price Cap for the Plug-in Car Grant includes:

  • VAT, including VAT reclaimable by a business
  • vehicle manufacturer or dealer’s mandatory extras inc. delivery charges and admin fees.
  • The cost of the battery which includes where a battery is leased
  • Any non-standard option fitted by the manufacturer or dealer affecting the capacity of the battery, drive train configuration or maximum net power.

It excludes:

  • any non-standard option fitted by the manufacturer/dealer which does not affect the capacity of the battery, drivetrain configuration or maximum net power.
  • Modifications such as Police Packs, Ambulance/Fire Engine modifcations
  • Modfications for disabled users
  • warranty/insurance and service packages
  • first registration fee and the cost of the first licence
  • discounts (including rebates).

Where a vehicle model has a price range that straddles the price cap, only those variants or trim levels priced below the cap will be eligible for the grant.

More Information

If you would like more information on Plug-in vehicles, either cars or vans, please get in touch with the team on 01332 290173 or complete the Enquiry Form below.

Further Reading

Backlash grows against cut to electric car grantsBBC News
BVRLA responds to the Government’s announcement to cut Plug-in vehicle grants and eligibilityBVRLA News
PHEV, BEV, MHEV or HEV – We explain the differencesCocoon Vehicles News

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