The government has cut electric vehicle (EV) car grants from Â£3000 to Â£2500.
Consumers purchasing an EV that costs more than Â£35,000 will now no longer qualify for a financial incentive, which was previously available on all electric vehicles costing up to Â£50,000.
The changes come into effect immediately from today (18 March).
Transport minister Rachel Maclean said: ‘We want as many people as possible to be able to make the switch to electric vehicles as we look to reduce our carbon emissions, strive towards our net-zero ambitions and level up right across the UK.
‘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 â€“ where most consumers will be looking and where taxpayersâ€™ money will make more of a difference.’
Martin Milliner from LV, General Insurance commented on this news: ‘This announcement sends out the wrong message, at a time when government should be putting their foot on the EV accelerator to drive engagement and purchase. Instead, as the clock ticks down to 2030, theyâ€™re putting the brakes on and giving people yet another reason to believe that the switch to electric is a financial bridge too far. We should be following France and Germanyâ€™s lead and offering an improved package of fiscal incentives and nudges to push drivers towards EVs.’
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