Govt Axe For EV Grant

Mon 20th Jun 2022

The cash incentive to buy an electric vehicle has been removed as it was too successful.

The Plug-In Car Grant (PiCG) saw car buyers receive a £1500 discount when purchasing an EV less than £32,000, it was a scheme which had been in effect for more than a decade.

Government data reveals that more than 500,000 EVs took advantage of PiCG, with the government making a total contribution of £1.4 billion. In its first year in 2011, only 1000 cars received the discount, however in the first five months of this year some 100,000 cars have benefitted. 

Recent years has seen the incentives reduced, and with more cars available on the market which qualify for the grant, it’s likely that the government’s bean counters have decided that the scheme was getting too expensive.

“The government has always been clear the plug-in car grant was temporary and previously confirmed funding until 2022-23. Successive reductions in the size of the grant, and the number of models it covers, have had little effect on rapidly accelerating sales or on the continuously growing range of models being manufactured,” a government spokesman said.

“Due to this, the government is now refocusing funding towards the main barriers to the EV transition, including public charging and supporting the purchase of other road vehicles where the switch to electric requires further development."

The government now aims at focusing its efforts on developing the UK’s charging infrastructure, and has also pledged £300 million towards incentives on a range other vehicles such as plug-in taxis. There are also claims that the saving made by owning an EV on its own now far outweigh the government incentive.

"The government continues to invest record amounts in the transition to EVs, with £2.5 billion injected since 2020, and has set the most ambitious phase-out dates for new diesel and petrol sales of any major country. But government funding must always be invested where it has the highest impact if that success story is to continue,” said Transport Minister, Trudy Harrison.