Plug-In Car Grant reduction comes into force
23 October 2018
Author: Sean Keywood
Changes to the Plug-In Car Grant, reducing financial incentives for buying pure electric vehicles (EVs) and scrapping them altogether for currently available plug-in hybrids, have now been implemented.
The government previously announced the changes would be introduced by 9 November, but warned that they could be brought forward if sales of affected vehicles were higher than expected.
It says that due to a high level of demand, a cap on vehicles eligible for the grant has been reached, so the changes are now in place.
A Department for Transport spokesperson said: "The Plug-In Car Grant has been a runaway success, helping bring more than 160,000 ultra-low emission vehicles to our roads over the last seven years, and delivering significant CO2 savings compared to petrol or diesel cars.
"Following exceptional demand, the sales cap for all vehicles eligible for the grant has been reached, and the new grant rates are now in effect.
"These changes will allow us to focus support on zero-emission vehicles, such as pure electric and hydrogen fuel cell cars. Hybrid vehicles will continue to be supported through lower car tax rates, grants for charging infrastructure and local incentives such as free parking."
Under the changes, the grant for what the government calls category one cars - with CO2 emissions of less than 50g/km and a zero emission range of at least 70 miles - has dropped from £4,500 to £3,500.
Grants for category two cars - with CO2 emissions of less than 50g/km and a zero emission range between 10 and 69 miles - and category three cars - with CO2 emissions of 50 to 75g/km and a zero emission range of at least 20 miles - have been stopped.
In practice this means buyers of plug-in hybrids currently on sale, including the likes of the Mitsubishi Outlander PHEV, no longer get grants, having previously been eligible for up to £2,500.