Government extends £5000 plug-in car grant until at least February 2016

Government extends £5000 plug-in car grant until at least February 2016


The Government has announced that the current Plug-in Car Grant scheme would continue to offer motorists up to £5,000 off the price of an electric car until at least February 2016 for all categories of vehicle, boosting further the rapidly-growing plug-in car market.

Revealed today (Wednesday 26th August), the grant will remain open to motorists looking to buy a new ultra-low emission vehicle (ULEV) until early 2016 at a minimum. A longer term plan will be drawn up and announced after the Government’s November spending review.

The grant, which offers motorists up to £5,000 of the price of an electric car, has been extended for all categories of vehicle and aims to build on the recent growth of the plug-in car market.

Before this announcement, the plan was to run the scheme until 50,000 grants had been awarded but, with around 40,000 grants already made and sales of ULEVs accelerating, forecasts were coming in for the scheme to have reached its limit around November 2015. As a result of the extension, all plug-in cars with CO2 emissions of 75 g/km of under will remain eligible for the grant until February.

Transport Minister Andrew Jones MP said: “I’m pleased to announce today that the government is maintaining the current levels of grant, even as we move past the milestone of 50,000 vehicles. The UK is now the fastest growing market for electric vehicles in Europe. We will continue to invest to help make this technology affordable to everyone and to secure the UK’s position as a global leader.”

Hetal Shah, Head of Go Ultra Low, the Government backed campaign to promote ultra low-emission vehicles, said: “Continuing the Plug-in Car Grant at current levels is positive news for everyone, as it encourages zero-emission motoring and secures more funding for a greater number of ULEV buyers. This announcement demonstrates the government’s commitment to supporting the growth of the ULEV market. If we are to meet ambitious targets for ULEV uptake, continued investment is paramount.”

With more choice of plug-in vehicles than ever, the number of grants awarded is expected to continue increasing rapidly. Ranges from the likes of Audi, BMW, Mitsubishi, Renault, Toyota and Volkswagen all feature zero or low-emission models and sales have increased to the extent that 2014’s ULEV sales figure was passed in 2015 with six months to spare.