The Government’s Plug-in Vehicle Grant (PIVG) scheme for electric cars, vans and trucks has been updated to target less expensive models and reflect a greater range of available affordable vehicles. The aim is to allow the scheme’s funding to go further and help more people make the switch to an electric vehicle.
From 18 March 2021, grants of up to £2,500 will be provided for electric vehicles on cars priced under £35,000. Grants will no longer be available for higher-priced vehicles. The Government asserts that purchasers of such vehicles are typically drivers who can afford to switch without taxpayer subsidy.
The number of electric car models priced under £35,000 has increased by almost 50% since 2019 and more than half the models currently on the market will still be eligible for the grant, including many spacious family cars.
Over recent years the Government has said it intends to reduce the plug-in car grant. It is retaining support for the switch to electric vehicles through other new investments.
Almost 11% of new cars sold in 2020 had a plug; up from just over 3% in 2019 – and battery electric car sales have almost tripled over that same period.
The PIVG scheme was renewed last year, with £582 million of funding intended to last until 2023.
Applications remain open year-round.