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Government EV grants updated to target less expensive models priced under £32,000

The Government’s grant scheme for zero-emission vehicles has been updated to target less expensive models, allowing the scheme’s funding to go further and to help more people make the switch to an electric vehicle (EV).

From 15 December 2021 the Government will provide grants of up to £1,500 for electric cars priced under £32,000, with currently around 20 models on the market, ensuring taxpayers’ money makes the most difference – and ensuring as many people as possible can benefit. Support for wheelchair accessible vehicles is being prioritised, with these retaining the £2,500 grant and a higher £35,000 price cap. The Government’s total investment in the EV transition remains unchanged.

Purpose-built taxis that have CO2 emissions of less than 50g/km and can travel at least 112km (70 miles) without any emissions at all will also still be eligible for a grant. The grant will pay for 20% of the purchase price of LEVC TX and Dynamo Taxi vehicles, up to a maximum of £7,500.

Grant rates for the Plug in Van Grant will now be £5,000 for large vans and £2,500 for small vans, with a limit of 1,000 per customer per year.

Motorcycle and moped grants will also be changing, with the Government now providing £500 off the cost of a motorcycle, and £150 for mopeds, with a price cap on vehicles of £10,000.

Whilst the grant levels have slowly reduced over time, the sales of electric vehicles are rising fast. Record sales in 2021 have already exceeded those from 2019 and 2020 combined.

Transport Minister Trudy Harrison said: “The market is charging ahead in the switch to electric vehicles. This, together with the increasing choice of new vehicles and growing demand from customers, means that we are refocusing our vehicle grants on the more affordable vehicles and reducing grant rates to allow more people to benefit, and enable taxpayers’ money to go further.

“We want as many people as possible to be able to make the switch to an electric vehicle, which is why we will also be introducing new rules to make it easier to find and pay at chargepoints. This will ensure drivers have confidence in our charging infrastructure, as we look to reduce our carbon emissions, create green jobs and level up right across the UK.”

The total funding committed by this government to support the transition to zero emission vehicles is £3.5billion. This includes recent investments like an additional £350million to support the electrification of UK vehicles and their supply chains, as part of our £1billion commitment, and a further £620million for targeted electric vehicle grants and infrastructure, with a focus on local on-street residential charge points.


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