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Plug-In Car Grant extended to March 2018

Date: 17 December 2015   |   Author: Daniel Puddicombe

The Government has confirmed that the Plug-In Car Grant will continue until at least the end of March 2018, backed by £400m of funding which aims to treble the number of ultra-low emissions vehicles in the country.

From March 2016, two grant rates will be available, with category one cars (those with zero emissions range of more than 70 miles) receiving a £4500 discount.

Category two and three cars - typically plug-in hybrid vehicles - meanwhile, will receive £2500.

A price cap will also be introduced from March. Category two and three vehicles with list prices of over £60,000 (such as the Mercedes S-class plug-in hybrid) will not be eligible for the grant, while all category one vehicles, regardless of the list price, will be eligible for the subsidy.

The Government has also confirmed that hydrogen vehicles will also qualify for the £4500 grant.

The Department for Transport also confirmed that it will offer up to £500 off the price of fitting domestic electric charging points to help ULEV owners charge at home.

The Government has indicated that the Plug-In Van Grant will continue to offer up to £8000 off the price of new vans, up to 25% of the price list until further notice according to a DfT spokesman.

"The UK is a world leader in the uptake of low emission vehicles and the plug-in car grant has been key to that success," said transport minster, Andrew Jones. "Extending the grant in a sustainable way ensures more than 100,000 people will benefit from financial support when purchasing these cheap-to-run and green cars."

"The new Plug-In Car Grant secures more funding for a greater number of plug-in car buyers, continuing the rapid growth of the UK's electric vehicle market," said Poppy Welch, head of the Go Ultra Low campaign.

"The new grant levels reflect the lower purchase price of these vehicles and remains an excellent purchase incentive for motorists embracing this new, green technology."

However, David Martell, CEO of Chargemaster believes that more support should be made available to buyers to fit their own domestic chargers. 

"Reducing support for electric car owners to install a charger at home is premature and a step backwards for UK carbon reduction and the necessary push towards air quality improvement," said David Martell, CEO of Chargemaster.

"It means that many plug-in hybrid vehicle drivers will simply not bother fitting a charger at home and run their cars on fossil fuel instead. To get the full benefit of owning an EV, a homecharger is vital."