- soaring demand for EVs leads to refocusing of grants on the
most affordable zero emission cars, making best use of taxpayer
money
- analysis shows sales of zero-emission cars are up 89%
compared to 2020, and in the last 3 months nearly 1 in 4 new cars
sold had a plug
- comes as new rules set to be introduced next year to improve
reliability and make it easier to pay at public chargepoints
As sales of plug-in cars, vans and motorcycles increase, the
government is today (15 December 2021) announcing that the grant
scheme for zero-emission vehicles has been updated to target less
expensive models, allowing the scheme’s funding to go further and
to help more people make the switch to an electric vehicle
(EV).
The plug-in grant scheme, which has supported nearly half a
million vehicles over a decade, has helped kickstart a market
that is now moving forward at pace with over one in 10 cars sold
in 2021 – over 150,000 – having a plug. EVs are becoming more
affordable as the market has expanded and demand is increasing.
From today the government will provide grants of up to £1,500 for
electric cars priced under £32,000, with currently around 20
models on the market, ensuring taxpayers’ money makes the most
difference – and ensuring as many people as possible can benefit.
Support for wheelchair accessible vehicles is being prioritised,
with these retaining the £2,500 grant and a higher £35,000 price
cap. Government’s total investment in the EV transition remains unchanged.
Grant rates for the Plug in Van Grant will now be £5,000 for
large vans and £2,500 for small vans, with a limit of 1,000 per
customer per year. This will enable a more sustainable grant
scheme and will ensure that taxpayers’ money is distributed more
fairly across businesses seeking to transition their vehicles to
zero emission. Plug in Van Grant orders in 2021 are already over
250% higher than in 2020, demonstrating the strong shift to an
electric future.
Motorcycle and moped grants will also be changing, with the
government now providing £500 off the cost of a motorcycle, and
£150 for mopeds, with a price cap on vehicles of £10,000. Almost
50% of mopeds sold this year were battery electric, with some
models now at price parity with their internal combustion engine
equivalent. These changes and the new price cap will target
funding where it is really needed to support the transition to
zero emission two-wheelers.
The government’s approach to supporting the uptake of electric
cars is clearly working – while the grant has slowly reduced over
time, the sales of electric vehicles has soared. Record sales in
2021 have already exceeded those from 2019 and 2020 combined.
Meanwhile the government is also setting out that it will
introduce new rules next year that will increase confidence in
our EV charging
infrastructure. These rules will mandate a minimum payment method
– such as contactless payment – for new 7.1 kW and above chargepoints, including rapids.
Motorists will soon be able to compare costs across networks
which will be 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.
Transport Minister said:
The market is charging ahead in the switch to electric vehicles.
This, together with the increasing choice of new vehicles and
growing demand from customers, means that we are refocusing our
vehicle grants on the more affordable vehicles and reducing grant
rates to allow more people to benefit, and enable taxpayers’
money to go further.
We want as many people as possible to be able to make the switch
to an electric vehicle, which is why we will also be introducing
new rules to make it easier to find and pay at chargepoints. This
will ensure drivers have confidence in our charging
infrastructure, as we look to reduce our carbon emissions, create
green jobs and level up right across the UK.
The total funding committed by this government to support the
transition to zero emission vehicles is £3.5 billion. This
includes recent investments like an additional £350 million to
support the electrification of UK vehicles and their supply chains, as
part of our £1 billion commitment, and a further £620 million for
targeted electric vehicle grants and infrastructure, with a focus
on local on-street residential charge points.
Generous tax incentives for EVs remain in place, including
favourable company car tax rates, which can save drivers over
£2,000 a year and we expect the total cost of EV ownership to reach parity during the
2020s compared to petrol and diesel cars.
The market responded to the last changes to the plug-in grants in
March 2021 with car manufacturers dropping prices for 18 zero
emission models. The number of chargepoints is increasing too.
Since 2016, we have worked with industry to deliver a five-fold
increase in the number of chargepoints, up from 5,000 to over
27,000 today.
