Government axes electric car grant

June 14, 2022 by

The £1,500 grant for new electric cars has been dropped as Government moves focus to other areas

  • £1,500 electric car grant scrapped
  • Scheme closed for new orders from 14 June
  • Focus shifts to vans, trucks, taxis and motorbikes
  • Grant has been reducing over recent year
  • Additional attention on improving public charging network
  • SMMT slams move as “sending the wrong message”

The Government has ended grants for new electric cars with immediate effect, ending a scheme that has contributed toward the purchase of almost half a million electric cars

The sudden change, which instantly removes the £1,500 contribution towards EVs costing under £32,000, covers all new orders from 14 June, although orders placed in the previous two working days will still be honoured. 

Transport minister Trudy Harrison said the Government has now successfully “kick-started” the electric vehicle market. “We now want to use plug-in grants to match that success across other vehicle types, from taxis to delivery vans and everything in between,” she said.

The grant was cut in December by £1,000 to £1,500, and the threshold dropped from £35,000 to £32,000, prompting several manufacturers to cut prices on models close to the boundary, keeping them eligible. 

Grants for light commercial vehicles remain at £2,500 on small vans and £5,000 on large vans, while motorcycles under £10,000 get £500 and mopeds £150. 

Sending the wrong message

The Society of Motor Manufacturers and Traders reacted angrily to the grant being removed overnight, describing it as “sending the wrong message” to motorists. “We are now the only major European market to have zero upfront purchase incentives for EV car buyers yet the most ambitious plan for uptake,” said SMMT chief executive Mike Hawes, who demanded that Government use the saving on grant money to “compel massive investment in the charging network, at rapid pace and at a scale beyond anything so far announced”.

The Government said previous reductions in the grant have had “little effect on rapidly accelerating sales or on the continuously growing range of models being manufactured”.

Grants remain in place for workplace charging, or home charging points for flats or rented houses, but not privately-owned houses.

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