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DfT support grant of £7,500 for taxi drivers shifting to electric cabs will continue in 2022/2023

Updated: Oct 12, 2021

The Department for Transport (DfT) reaffirmed their Electric Vehicle (EV) support by detailing the different grants available to help motorists, businesses and taxi drivers shift to EV.

In the coming 2022/23 financial year, the Government has set aside £582m to help fund car, vans, motorcycles and importantly, taxis.

Taxi drivers can still claim up to £7,500 off the purchase price of a new electric taxi.

Catherine West MP, Shadow Foreign and Commonwealth Affairs Minister, asked the Secretary of State for Transport: “What his policy is on introducing grants to members of the public to assist with the (a) purchase and (b) maintenance of electric cars.”

Rachel Maclean MP replied: “The Government has put in place various grant funding schemes to assist members of the public to reduce the up-front purchase price of electric vehicles. The Office for Zero Emission Vehicles provides a plug-in car grant of £2,500 towards eligible cars costing less than £35,000 and a plug-in van grant with small vans receiving up to £3,000 and large vans up to £6,000.

“Alongside cars and vans, the plug-in taxi grant gives licensed taxi drivers up to £7,500 off the price of a new vehicle and eligible zero emission mopeds and motorcycles can receive a grant of up to £1,500. In November 2020, Government announced more funding for the plug in vehicle grants. Including funding committed at Budget 2020, this brings a total of £582m for cars, vans, motorcycles and taxis to 2022/23. The March 2020 Budget included the extension of favourable benefit in kind tax rates for zero emission vehicles out to 2025; company car tax is only 1% for this financial year 2021/22 and 2% in 2022/23 through to 2024/25.

“The Government does not provide grants to assist with the maintenance of electric vehicles. Electric vehicles already have significantly cheaper running costs than petrol or diesel vehicles and all zero emission cars are exempt from vehicle excise duty (VED).”


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