The government has abolished the £1,500 plug-in car grant that was formerly available if your EV cost less than £32,000, which is bad news for people considering an affordable electric car in the UK. The Department for Transport said today (June 14) that new car orders under the scheme, which offers a £1,500 discount on cars costing less than £32,000, will be halted. The decision comes as full-electric vehicle sales have increased by 70% in the last year.
- The government has cancelled the plug-in car stipend as it focuses on strengthening the charging network.
- The £1,500 grant for new car owners who spend less than £32k has come to an end.
- The government has stated that financing will be refocuse on strengthening the charging network.
- Only autos are affected by the grant's expiration.
- This follows two significant reductions in the program last year.
The grants will now be refocused on the main hurdles in the EV transition,' especially public charging, according to the release. However, the award only applies to automobiles and excludes plug-in taxis, small and big trucks and vans, mopeds, motorbikes, and wheelchair accessible vehicles. The Department for Transport (DfT) reaffirmed that the plug-in car award was always 'temporary,' and that cutbacks in the grant amount and number of cars covered 'had little effect on fast increasing sales, or the continuously growing range of models being made.' Dealers who sold electric cars through the scheme two working days prior to today's announcement (June 14) will still be eligible.
'With billions of both government and industry investment continuing to be pushed into the UK's electric revolution, the sale of electric vehicles is growing,' said Transport Minister Trudy Harrison. With strong government incentives remaining in place, we are continuing to lead the way in creating sustainable transportation, while also creating high-skilled employment and healthier air across the UK.'The decision occurred at "the worst conceivable time," according to Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders. "Scrapping the Plug-in Car Grant sends the wrong message to motorists and an industry that remains dedicated to the governments net zero goal," he said.
'With the sector still recovering and all manufacturers set to be required to offer many more electric vehicles than current demand suggests, this decision comes at the worst possible time.' If we are to meet our ambitions, the government must use these savings and force significant investment in the charging network, at a rate and scale much exceeding anything previously announced.' The government has stated that after the grant expires, it will "focus resources on expanding the public charge point network," yet it does not appear that the £1.6 billion pledged to install 300,000 more chargers by 2030 has been increased.
What are our thoughts on the news, readers? Oh, and if you've recently purchased an EV, all previous grant applications will presumably be honored, and any cars sold in the two working days before to today's announcement will be eligible if no application has been submitted.