Last reviewed 16 June 2022

The plug-in car grant scheme (PiCG) has been withdrawn, with funding now focused on EV van subsidies and improving charging infrastructure, the Government has announced.

The PiCG, which was worth up to £1500 off an electric vehicle (EV), has been withdrawn with immediate effect. The Government claims the scheme has succeeded in creating a mature market for ultra-low emission vehicles and that it will now prioritise public charging infrastructure and supporting the purchase of other commercial road vehicles.

Announcing the plans, Transport Minister Trudy Harrison said that the Government had invested £2.5 billion to support the transition to EV and has “set the most ambitious phase-out dates for new diesel and petrol sales of any major country”.

“Having successfully kickstarted the electric car market, we now want to use plug-in grants to match that success across other vehicle types, from taxis to delivery vans and everything in between, to help make the switch to zero emission travel cheaper and easier,” Harrison added.

Funding for businesses to make the switch to electric vehicles will continue through the Government’s plug-in van and truck grants, which have been extended for two years. Last year, industry figures showed the UK had the highest number of plug-in electric vans sold in Europe and there were around four times as many grant applications compared to 2020.

By extending the grant scheme, the Government expects to support the purchase of tens of thousands of greener vans and trucks. Toby Poston, director at the British Vehicle Rental and Leasing Association (BVRLA), told Fleet News that subsidies towards vans and charging infrastructure is where they are needed most.

“As inflation surges and business and consumer confidence falls, Government needs to maintain these incentives if the country is to have any chance of hitting its ambitious decarbonisation targets,” he added.

Drivers holding standard car driving licences will also be eligible to drive electric goods vans at a higher weight limit, up to 4.25 tonnes (compared to a 3.5-tonne limit for diesel vans).

Details of the plug-in van and truck grants are available on the Government website.