The federal government has slashed the Plug-in Automotive Grant (PiCG) for consumers of electrical automobiles by £1000, whereas additionally lowering the variety of vehicles eligible for the scheme.
The grant had beforehand provided consumers of electrical vehicles 35% off the acquisition worth as much as a most of £2500. That most has now been reduce to £1500. On the similar time, the utmost really helpful retail worth of automobiles eligible for the grant has been decreased from £35,000 to £32,000. The change was first reported by Fleet Information.
The PiCG has most lately been out there to automobiles with CO2 emissions of lower than 50g/km that may journey at the least 70 miles on zero-emission energy.
This transfer is reportedly designed to make sure the federal government funding out there for EV grants is unfold among the many most variety of automotive consumers attainable, and follows report gross sales for EVs up to now this 12 months. A complete of 162,022 full battery-electric automobiles have been bought within the UK to this point, up 88.9% 12 months on 12 months and accounting for 10.6% of all vehicles bought this 12 months.
In a press release to the Home of Commons, under-secretary of state for transport Trudy Harrison stated: “With demand [for EVs] so robust, it’s proper that we search to focus the grants, that are funded by the taxpayer, on the areas the place they may have essentially the most affect and the place the market nonetheless wants authorities help.”
The federal government initially made £582 million out there for the PICG scheme, and added extra funding in a spending evaluate final October.
Wheelchair accessible automobiles will nonetheless be eligible for a grant of £2500 for automobiles priced underneath £35,000. Small and huge vans can be eligible for grants of as much as £2500 and £5000 respectively, with companies restricted to a most of 1000 grants per monetary 12 months. The grants for small and huge vehicles (£16,000 and £25,000) stay unchanged.
That is the third time prior to now two years the PiCG has been reduce. The grant was decreased from £3500 to £3000, with a £50,000 cap on most car costs within the 2020 Price range. It was then additional decreased to £2500, with the utmost car RRP slashed to £35,000, in March this 12 months.
Harrison additionally introduced plans to proceed investing in EV charging infrastructure, together with a brand new ‘minimal cost methodology’ – seemingly permitting contactless cost – for all new 7.1kw and sooner chargers.