UK Government updates criteria set for £6,000 Plug-in Taxi Grant

Image credit: LEVC

The UK Government has updated the criteria for its Plug-in Taxi Grant (PiTG), aimed at promoting the use of ultra-low emission vehicles (ULEVs) in the taxi industry.

The initiative is designed to reduce the cost differential between traditional combustion engine taxis and those employing cutting-edge, low-emission technologies.

Under the PiTG, taxi drivers and businesses purchasing or leasing new purpose-built ULEVs can now receive a discount of up to £6,000 on the price of an eligible vehicle. The grant categorises vehicles into two tiers based on their emission levels and zero-emission range. Vehicles that can travel 70 miles or more without emissions qualify for the maximum £6,000 discount, while those covering between 10 to 69 miles can receive up to £3,000.

These figures changed earlier this month from the maximum grant offered worth £7,500.

This financial support is available for vehicles that are both wheelchair accessible and meet specific emissions standards. These vehicles must be new and purpose-built for taxi use, with second-hand or converted vehicles not qualifying for the grant.

Manufacturers, rather than drivers or taxi companies, are responsible for applying to have their vehicles approved under the PiTG. Once a vehicle is approved, dealerships and manufacturers will handle the grant claims on behalf of their customers, simplifying the process. The grant amount is directly deducted from the sale price at the point of transaction, ensuring no additional paperwork for the buyer.

From a regulatory standpoint, the Office for Zero Emission Vehicles (OZEV) only accepts test results compliant with the Worldwide Harmonised Light Vehicle Test Procedure (WLTP) since 1 September 2019. This is to ascertain that the vehicles meet the stringent criteria laid out for both emissions and zero-emission range.

The approval process involves a detailed assessment by the Vehicle Certification Agency (VCA), which reviews the application submissions, technical evidence, and compliance with type approvals. Successful applications will see the vehicle models listed as eligible for the grant, while applicants needing to adjust their submissions due to technical requirements will be guided accordingly.

The PiTG is a strategic move by the government to align with environmental goals and modernise the UK's taxi fleets with cleaner, more sustainable technology options.