Update: Plug in Grant Changes
As of 7am today (Wednesday 15th December 2021), the government has made changes to the plug-in grants available for electric vehicles. As part of this, the grant for electric cars (PICG) has been reduced from £2,500 to £1,500 and restricted to cars priced under £32,000. This means popular electric cars such as the Mini Electric Cooper S 1 now won’t be eligible for the grant, unlike previously. The grant rate is now 35% of the purchase price, up to £1500. In terms of vehicle models, only variants or trim levels where the price is below the cap will be eligible for the grant. These changes came into immediate effect and at short notice. Although, support for wheelchair accessible vehicles will remain at 35% of the purchase price, up to £2,500 and the higher £35,000 price cap.
Other changes to the plug-in grant scheme have also been made, including cuts to the Plug-in Van Grant (PIVG). This means plug-in van customers will now receive 35% of the purchase price for small vans, up to a maximum of £2,500 and 35% of the purchase price for a large van, up to a maximum of £5,000. Eligibility criteria also applies for these grants. The plug-in van grants will be limited to 1000 grant applications each financial year for each business, although this will not apply to lease companies. Currently, no changes have been made to grant rates for vehicles over 3.5 tonnes.
The Government has decided to refocus the plug-in grant scheme to ensure it is sustainable. In the last decade, almost half a million vehicles have been supported by this scheme. This has largely driven the surge in demand for electric vehicles and many drivers have benefited from this. However, the decision has now been made to refocus on the more affordable vehicles, with currently around 20 eligible models available. Customer orders which were placed in the last seven days before the grant rate changes but are yet to be ordered via the OZEV Portal, will still follow the previous rates and eligibility criteria.
Transport minister Trudy Harrison 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."
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At GB Vehicle Leasing, our pricing team are working hard to amend the pricing on our website to reflect these changes. Our electric car lease deals should be updated shortly. In the meantime, if you’re interested in leasing an electric car, please contact our EV specialists on 0161 667 5338 and we’ll be happy to discuss this with you in further detail. We also anticipate that further changes to the plug-in grant scheme are likely to happen in the near future. So, is now the right time to opt for an electric vehicle and make the most of the scheme, while it lasts?