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NEWS ➤ Electric car grant slashed again

📂︎ News | 🖳︎ Wayne Gorrett | 🖃︎ 15 December, 2021
Mazda M30 electric vehicle* Click on image for higher resolution

The government has again slashed its grant for electric cars and vans – this time by a further £1,000.

Following on the heels of an earlier cut just a few months ago in March, 2021, the financial assistance is now capped at just £1,500 (previously £2,500) for electric cars and the list price limit for eligibility drops by £3,000 to £32,000.

Grant rates for the Plug-in-Van Grant will now be £5,000 for large vans and £2,500 for small vans – a reduction of £1,000 and £500 respectively.

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.

2020 KIA Soul EV

“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 chargepoints.

“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.”

Robin Luscombe, the managing director of Suzuki and MG retailer Luscombe Motors, described today’s unannouncment as ‘a double whammy’.

2021 Vauxhall Mokka and Mokka-e

He said: “The reduction from £35,000 to £32,000 will have quite a big effect because a lot of EVs are now priced just under £35,000 after earlier changes to the grant.

“In our worls it means that the MG5 estate car has just gone up by £1,000 overnight, while the newly-launched ZS EV will go up by £2,500.”

The plug-in grant scheme has supported nearly half a million vehicles over a decade.

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Posted by on December 15, 2021 in News


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