Parliamentary Under Secretary of State (): I am making this
statement to update the House on changes being made today to the
Government’s Plug-in Vehicle Grant Scheme as well as our plans to
regulate to improve the experience for drivers charging electric
vehicles.
Plug in Grant scheme
For over a decade, the Plug-in Vehicle Grant scheme has helped to
boost the uptake of zero and ultra low emission vehicles by
offsetting their up-front cost, supporting our goal of
eliminating tailpipe greenhouse gas emissions in our drive
towards net zero, as well as removing air pollutants that harm
human health.
The Government has invested over £1.5 billion since 2010,
supporting nearly half a million vehicles. The approach has
worked - it has helped to kickstart a market that is now moving
forward at pace. Over 150,000 zero emission cars have been sold
so far this year, more than 1 in 10 of all new cars sold.
Electric van uptake is also accelerating at pace, with grant
orders up 250% this year compared with 2020. And almost 50% of
mopeds sold in 2021 have been electric, with some models costing
the same upfront as an internal combustion engine equivalent.
Last year the Government announced a further £582 million to
continue the plug-in grants until at least 2022/23, and more
money was allocated at the Spending Review in October. This
funding remains in place. However, with demand 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.
From today, the Government will provide grants of up to £1,500
for electric cars priced under £32,000, focusing on the more
affordable vehicles and making best use of taxpayers’ money.
Wheelchair accessible vehicles are being prioritised, with a
higher grant of £2,500 for vehicles priced under £35,000. Small
vans will also receive £2,500, and large vans £5,000, with a per
financial year limit of 1,000 grants per business to ensure that
funding is spread fairly. There will be no changes for small or
large trucks, which receive £16,000 and £25,000 respectively.
Motorcycles priced up to £10,000 (L3e category) will receive £500
and mopeds (L1e) will get £150. These changes will allow the
scheme’s funding to go further, helping more people and
businesses to switch to an electric vehicle.
Generous tax incentives, including zero road tax and favourable
company car tax rates, which are a strong driver of uptake and
can save drivers over £2000 a year, remain in place. It is
expected that the total cost of EV ownership will reach parity
during the 2020s compared to petrol and diesel cars.
Improving drivers experience of charging
The UK has been a global front-runner in supporting provision of
charging infrastructure along with private sector investment. Our
vision is to have one of the best infrastructure networks in the
world for electric vehicles, and we want chargepoints to be
accessible, affordable and secure. Government and industry have
supported the installation of over 27,600 publicly available
charging devices including more than 5,000 rapid devices.
Government has also supported the installation of almost 250,000
chargepoints in homes and businesses.
Earlier in the year Government consulted to improve the consumer
experience at public electric vehicle chargepoints. Next year we
will introduce new rules that will increase confidence in our
electric vehicle charging infrastructure. This will mandate a
minimum payment method – such as contactless payment – for new
7.1 kw and above chargepoints, including rapids. Consumers will
soon be able to compare costs across networks in a recognisable
format similar to pence per litre for fuel and there will be new
standards to ensure reliable charging for electric vehicle
drivers.
Conclusion
Today’s announcement, which is part of a wider package of £3.5
billion funding that this Government is investing to support the
automotive sector and consumers in the transition to zero
emission vehicles, is in response to a market-led acceleration
towards greater Electric Vehicle ownership.
