GOVERNMENT CUTS EV GRANT AND EXCLUDES MORE CARS

The Government is cutting the Plug-in Car Grant (PICG) offered to buyers of new electriccarsandloweringtheupper price for eligible models.

Effective immediately, the changes see the grant offered by the Office for Zero Emission Vehicles cut from £3,000 to £2,500. They also mean the grant will only be available on cars priced below £35,000. Previouslyanycarcostinglessthan £50,000 was eligible.

The Department for Transport said the changes would help to “target less expensive models...allowing the scheme’s funding to go further”, adding: “Grants will no longer be available for higher-priced vehicles, typically bought by drivers who can afford to switch without a subsidy from taxpayers.”

However, industry observers have said it is the wrong move at the wrong time and threatenstohinderthegovernment’s own ambition to push motorists into electric vehicles ahead of the 2030 ban on new petrol and diesel cars.

Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders (SMMT) said: “The decision to slash the Plug-in Car Grant and Van and Truck Grant is the wrong move at the wrong time.

“New battery electric technology is more expensive than conventional engines and incentives are essential in making these vehicles affordable to the customer. Cutting the grant and eligibility moves the UK even further behind other markets.”

Last March the grant was cut from £3,500 and the £50,000 cap introduced to make the funding go further and the latest changes are aimed at keeping the scheme going until 2022-23. The DFT claims that since 2019 the number of sub-£35,000 EVS has risen by “almost 50 per cent”.

Transport Minister Rachel Maclean said: “The increasing choice of new vehicles, growing demand from customers and rapidly rising number of chargepoints mean that, while the level of funding remains as high as ever, given soaring demand, we are refocusing our vehicle grants on the more affordable zero emission vehicles – where most consumers will be looking.”