1 June 2018

Government extends Plug-in Car and Van Grants until at least October

The government is to continue offering Plug-in Car and Van Grants until ‘at least’ October 2018.

Confirmation came with the government saying that it emphasised its commitment to climate and clean air targets as part of £1.5 billion being spent on ultra-low emission vehicles to 2021.

The grants will be maintained at the current levels with a review to be carried out in the autumn. The government said it would try to provide as much notice as possible before any changes to grant levels were made, although it has previously said they would remain in some form until 2020.

Three levels of Plug-in Car Grant are currently available:

  • Category 1 - vehicles have CO2 emissions of less than 50g/km and can travel at least 112km (70 miles) without any CO2 emissions. The grant will pay for 35% of the purchase price, up to a maximum of £4,500.
  • Category 2 - vehicles have CO2 emissions of less than 50g/km and can travel at least 16km (10 miles) without any CO2 emissions. The grant will pay for 35% of the purchase price, up to a maximum of £2,500.
  • Category 3 - vehicles have CO2 emissions of 50 to 75g/km and can travel at least 32km (20 miles) without any CO2 emissions. The grant will pay for 35% of the purchase price, up to a maximum of £2,500.

Category 2 or 3 cars with a recommended retail price over £60,000 are not eligible for a grant.

The Plug-in Van Grant is available for vehicles that have CO2 emissions of less than 75g/km and can travel at least 16km (10 miles) without any CO2 emissions. The grant will pay for 20% of the purchase price, up to a maximum of £8,000.

In the first four month of 2018 a total of 16,470 cars were registered that have been eligible for a Plug-in Car Grant, up 19.5% on the same period last year (13,784 vehicles). Last year 46,522 plug-in cars were registered, 27.3% up on 2016 (36,535 vehicles). Since the launch of the Plug-In Car Grant in January 2011, there have been 144,026 eligible cars registered.

In 2018, annual electric car registrations could reach 60,000 units for the first time, according to Go Ultra Low, the government and industry-backed organisation that promotes the use of plug-in vehicles, retaining the UK’s position as one of Europe’s largest markets for ultra-low emission vehicles.

The Plug-in Van Grant was launched in 2012 and since then just over 4,000 grants have been claimed. But the government believes that electric vans have a critical role to play in in delivering air quality benefits in urban areas, particularly as presently more than 96% of commercial vehicles are diesel.

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