Government Cuts Plug-In Car Grant (Again)

Government Cuts Plug-In Car Grant (Again)

Government Cuts Plug-In Car Grant (Again)

The government has slashed the plug-in car grant by another £1,000, meaning drivers will make less of a saving on EVs…

Plug-In Grant Cut

If you’re planning on purchasing an electric vehicle soon, we’ve got bad news. The plug-in car grant has, once again, been slashed – this time by a significant £1,000. The cut was made on December 15th, meaning drivers will now save £1,500 as opposed to £2,500. In addition, the maximum price of eligible vehicles has been reduced from £35,000 to £32,000.

According to the government, cuts to the grant are “clearly working – whilst the grant has slowly reduced over time, the sales of electric vehicles has soared”. Trudy Harrison, the transport minister, explained that “refocusing our vehicle grants on the most affordable vehicles and reducing grant rates to allow more people to benefit; and enable taxpayers’ money to go further”.

The first cut to the plug-in grant came back in March 2021, when it was reduced from £3,000 to £2,500. Moreover, the maximum price of eligible vehicles was reduced from £50,000 to £35,000. The government’s argument back then, as it is now, is that the cuts mean more people can benefit in the long-term.

A ‘Counterintuitive’ Decision 

Motor industry figures have been largely critical of the government’s strategy. Nicholas Lyes, the RAC’s head of roads policy, expressed concern about how few vehicles were eligible. He said, “this disappointing cut means that only around 20 EV models are now eligible for the grant; which doesn’t leave a great deal of choice for consumers”. He added, “we’re concerned the government has taken this step too soon”.

Edmund King, President of the AA, has also been critical of the move. He explained, “reducing the grant and the number of vehicles will be a disappointment for many” and called the decision “counterintuitive”.

Recently, nearly 1 in 5 British car sales were electric; a testament to their rising popularity. However, in Norway BEVs make up around 54% of new car registrations; and the country is only now beginning to roll back on its significant, and diverse, benefits for EV drivers. In effect, then, the UK government wants people to buy EVs – it just doesn’t seem to want to spend much money in encouraging them to do so.

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