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Government cuts electric car grant to £1500

Under new rules, electric car buyers will be able to claim £1000 less than before and the number of models eligible for the PiCG government grant has been reduced...

Mokka-e Source London Charging

The British Government has slashed its Plug-in Car Grant (PiCG) for buyers of fully electric vehicles from £2500 to £1500, plus the grant will now only be available for vehicles costing up to £32,000.

Previously, the maximum was £35,000, so the latter change means that five-star What Car? rated models including the Kia e-Niro and Skoda Enyaq iV (below) no longer qualify for a contribution towards the price.

The decision has apparently been taken in an effort to ensure that the government funding set aside for electric car grants is spread between the maximum number of buyers possible.

Skoda Enyaq iV 2021 front

It follows a boom in the sale of electric cars in the UK in 2021, with 21,726 sold up to the end of November – a 110% increase on the same period in 2020.

Under-secretary of state for transport Trudy Harrison MP told Parliament: "With demand [for electric cars] so strong, it is right that we seek to focus the grants, which are funded by the taxpayer, on the areas where they will have the most impact and where the market still needs government support."

RAC head of roads policy Nicholas Lyes criticised the decision, saying: "This disappointing cut means that only around 20 electric car models are now eligible for the grant, which doesn't leave a great deal of choice for consumers."

Mazda MX-30 charging

He added: "RAC research suggests that drivers already feel the upfront cost of electric vehicles is too high, so this has to be seen as a step in the wrong direction."

An exception is being made for wheelchair accessible vehicles, with these still eligible for a grant of £2500 on vehicles priced up to £35,000.

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