Zapped... cash to help us switch to electric cars

GRANTS to get motorists to switch to electric cars have been slashed, after soaring demand put huge strain on the UK Government scheme.

The Department for Transport announced yesterday that the plug-in car incentive would be cut by £500 to £2,500 – with the upper limit for eligible vehicles reduced from £50,000 to £35,000.

Ministers said the move, in effect immediately, would make funds last longer and focus resources on those who could least afford electric vehicles.

But critics said that the changes have been brought in too early, and will put the brakes on the drive to switch to electric ahead of the phasing out of sales of new petrol and diesel cars and vans in 2030.

Transport Minister Rachel Maclean said: ‘The increasing choice of new vehicles, growing demand from customers and rapidly rising number of chargepoints means that, while the level of funding remains as high as ever, we are refocusing our vehicle grants on the more affordable zero-emission vehicles – where most consumers will be looking and where taxpayers’ money will make more of a difference.’

But Mike Hawes, of the Society of Motor Manufacturers and Traders, said: ‘This sends the wrong message to the consumer, especially private customers, and to an industry challenged to meet the Government’s ambition to be a world leader in zero-emission mobility.’

Graham Hoare, of Ford, called the cuts ‘disappointing’, adding: ‘Robust incentives are essential if we are to encourage consumers to adopt new technologies.’

Nearly 11 per cent of new cars sold last year were plug-ins, compared with 3 per cent in 2019. The grant scheme was renewed last year, with £582million of funding intended to last until 2023.