Article By Richard Aucock

Government cuts EV Plug-in Car Grant to £2,500

Effective immediately, the Plug-in Car Grant for EVs has been reduced by £500 – and the maximum price cap has been cut to £35k

The government has reduced the Plug-in Car Grant from £3,000 to £2,500 and, more significantly, capped the new car price to under £35,000.

Previously, cars costing less than £50,000 were eligible.

This will mean top-selling new EVs such as the Tesla Model 3 are no longer eligible for the Plug-in Car Grant.

The changes are effective immediately.

Ministers say the fast growth in EVs priced under £35k – up 50% since 2019 – is behind the move.

“While the level of funding remains as high as ever,” said transport minister Rachel Maclean, “given soaring demand, 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.

The government has allocated £582m to the Plug-in Car Grant. With the latest change, it says this is enough for it to last until 2022 or 2023.

However, Ms Maclean does not rule out further changes, saying: “We will continue to review the grant as the market grows.”

The growth in sales of new EVs means more people are using funds from the grant, which is why the government has moved to tighten eligibility.

Last year, sales of battery electric vehicles almost tripled – and despite the changes more than half the pure EV market will still be eligible for the grant.

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