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What is the government plug-in car grant?

On 11 October 2018, the Government announced changes to the Plug-In Car Grant scheme. From 9 November 2018 the grant for Category 1 cars is being cut to £3,500, while the grant for Category 2 and 3 cars is being scrapped completely.

Read our full list of cars currently eligible for the government plug-in car grant to find the perfect low-emissions car for you or head over to our new car deals page to see how much carwow can help you save.

Which cars will be eligible for the government grant?

Plug-in hybrid vehicles will be eligible for a government grant, providing they emit less than 75g/km of CO2 and can travel at least 10 miles in fully electric mode alone.

Electric cars must be able to travel at least 70 miles between charges and have to be able to achieve a top speed in excess of 60mph. Both vehicle types must come with a three-year, or 60,000 mile, warranty that covers both the batteries and electric motors.

Grants are split into three categories depending on CO2 emissions and electric-only range. Electric vehicles must be able to travel at least 70 miles, while plug-in hybrid vehicles will be judged based on both their pure electric range and the CO2 emissions of their petrol or diesel engines.

Any car costing more than £60,000 will not qualify for a grant, regardless of how little CO2 it emits or how far it can travel in electric-only mode.

What is the category one government grant?

A category one grant is for fully electric cars and plug-in hybrids that emit less than 50g/km of CO2. These vehicles will receive a grant of 35 per cent of the car’s value, up to a maximum of £4,500. Cars in this category include the Nissan Leaf, Volkswagen e-Up and the BMW i3.

After 9 November 2018, this grant is being reduced to £3,500.

What is the category two government grant?

Category two is for plug-in hybrid vehicles that emit less than 50g/km of CO2 and have a fully electric range of between 10 and 69 miles. These cars will receive the same 35 per cent grant, up to a £2,500 maximum. Cars in this category include the Mitsubishi Outlander PHEV, the Audi A3 e-tron and the Toyota Prius Plug-in.

This grant is being scrapped completely after 9 November 2018.

What is the category three government grant?

The third category is for vehicles that emit slightly more CO2 per kilometre – between 50g and 75g – yet have a fully electric range of at least 20 miles. Cars in category three will receive the same grant as category two cars.

Any car with a retail price of more than £60,000 will not be eligible for any grant, however. For a selection of all eligible cars, read out list of electric cars and plug-in hybrids that qualify for government grant.

This grant is being scrapped completely after 9 November 2018.

What if I’ve already bought a car, will I still get the grant?

Unfortunately not – the grant applies only to new cars. As a result, second-hand or nearly-new vehicles will not be eligible for a helpful £4,500 discount even if they fit into one of the three categories listed above.

Save money on your new car

If you’re not sure what car to buy, read our list of the best electric cars or best  hybrid cars before using our new car deals page to view the latest carwow offers.

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