Government ‘plug-in’ grants to help buy an Electric Vehicle have been cut.

The grant has been reduced from £2,500 to £1,500. Meanwhile, the value of vehicles eligible for the funding assistance reduced from £35,000 to £32,000. This comes just seven months after earlier cuts .

Clear confusion

Today’s move follows a warning from Department for Transport’s Office for Zero Emission Vehicles (OZEV), in May. At the time it stated that more “overnight” changes to plug-in car grant (PiCG) EV incentives were likely as part of a “managed exit” from Government subsidies for zero emission vehicles.

OZEV said at the time that it was “unlikely to be able to provide additional notice”. It claimed this was due to the need to manage the grant budget “on behalf of taxpayers and future grant applicants.”

All charged up

Commenting on today’s changes, Transport Minister Trudy Harrison said: “The market is charging ahead in the switch to electric vehicles.

“This, together with the increasing choice of new vehicles and growing demand from customers, means that we are re-focusing our vehicle grants on the more affordable vehicles and reducing grant rates to allow more people to benefit, and enable taxpayers’ money to go further.

“We want as many people as possible to be able to make the switch to an electric vehicle, which is why we will also be introducing new rules to make it easier to find and pay at charge points.

“This will ensure drivers have confidence in our charging infrastructure, as we look to reduce our carbon emissions, create green jobs and level up right across the UK.”

Going into reverse

Government’s’ continued changes to the PiCG go against calls from the Society of Motor Manufacturers and Traders (SMMT) who want increased support for potential EV buyers. They cite successful subsidised schemes operated in Norway and Germany.

Jon Lawes, Managing Director, Hitachi Capital Vehicle Solutions, said:

“Last minute cuts to both the grants for cars and vans are counter intuitive to achieving the ambitious targets set by the Government to reduce carbon emissions and has the potential to dampen the strong demand for zero emission vehicles we’ve seen in recent months.

“Despite the growth of EV registrations, this market remains in its infancy,” adds Jon. “The government rationale to reducing eligibility at this juncture for the second time this year is confusing, as we know financial incentives to encourage EV adoption are an important factor within the vehicle renewal decision making process.”

New routes

Meanwhile, The DfT said that measures to help boost the adoption of EVs would include the introduction new rules next year. The EV charging infrastructure has become a significant priority as EV sales increase.

These rules will mandate a minimum payment method – such as contactless payment – for new 7.1 kw and above charge points. Motorists will soon be able to compare costs across networks in a recognisable format similar to pence per litre for fuel. There will also  be new standards to ensure reliable charging for electric vehicle drivers.

Big bucks

Government claims that its funding to support the transition to zero emission vehicles totals £3.5bn. This includes a recent £350m cash injection to support the electrification of UK vehicles and their supply chains. It comes as part of a £1bn overall commitment, and a further £620m for targeted EV grants and infrastructure. There is a concerted focus on local on-street residential charge points.