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Grants for electric vehicles cut by 40%

Grants for electric vehicles cut by 40%

April Foster

The plug-in grant scheme for brand new zero-emission cars has been cut by 40% and is now restricted to lower priced vehicles.

From 15 December 2021, the level of grant available for low-emission cars has been cut to £1,500 (from £2,500). To be eligible for the grant, the car must have a recommended retail price (RRP) of less than £32,000 (reduced from £35,000) including VAT and delivery fees.  This now equates to around 20 models currently on the market - the majority of executive cars have been removed from the list.

This is the second cut to grants for electric vehicles this year – the upper price limit for vehicles was £50,000 back in March. The government says the changes have been made to refocus grants on the most affordable zero emission cars and make best use of taxpayer money.

For more information and a list of the vehicles eligible for the grant click here

Wheelchair accessible vehicles
The grant for wheelchair accessible vehicles remains at the higher rate of £2,500, and includes vehicles costing up to £35,000.

Plug-in Van Grants
The grants for low-emission vans have also been reduced.  Grants are available for 35% of the purchase price of small vans up to a maximum of £2,500 (this is down from £3,000).  For large vans, grants of up to £5,000 are available (previously this was £6,000).  

Grants are limited to 1,000 per business or organisation per year (the limit resets every year on 1 April).

Grants are available for 20% of the purchase price of purpose-built electric taxis up to a maximum grant of £7,500.

Motorcycle and moped grants
Grants for electric motorcycles and mopeds have also changed. To be eligible for a grant the motorcycle must have a recommended retail price of less than £10,000 including VAT and delivery fees.  A grant of up to 35% of the purchase price is available (up to a maximum of £500 for motorbikes and £150 for mopeds.)

Grants for other vehicles
Grants are also available for other vehicles, such as trucks, and for vehicle chargers.  Find out more here.

How is the grant applied?
The grant will continue to be applied by the dealer and included in the vehicle’s price – consumers do not need to do anything to claim the grant.

For further advice on any of the information contained in this article please contact your local Moore adviser.