Grants for electric vehicles will now target cheaper models

The government has updated the grant scheme for zero-emission vehicles to target less expensive models, allowing the funding to go further. 

Under the new scheme, the government will provide grants of up to £1,500 for electric vehicles (EVs) priced under £32,000, of which there are currently around 20 models on the market. 

The Plug-in Van Grant will now be £5,000 for large vans and £2,500 for small vans, with a limit of 1,000 per customer per year. 

According to the government, Plug-in Van Grant orders in 2021 are already over 250% higher than in 2020, demonstrating the strong shift to an electric future.

Support for wheelchair accessible vehicles is also being prioritised, with these retaining the £2,500 grant and a higher £35,000 price cap. 

Motorcycle and moped grants will also be changing, with the government now providing £500 off the cost of a motorcycle, and £150 for mopeds, with a price cap on vehicles of £10,000.

Almost 50% of mopeds sold this year were battery-electric, with some models now at price parity with their internal combustion engine equivalent. 

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 refocusing 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 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.’

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