Plug-in car grant extended to 2018 17 | 12 | 2015
THE UK's PLUG-IN car grant has been extended to at least the end of March 2018. But the Government has reduced the total value of the grant from £5000 to £4500. The new rate will be introduced on February 16 next year.
Previously the grant had been extended through to February 2016, but the latest extension is aimed to boost the uptake of hybrid and electric vehicles for the coming years.
Transport Minister Andrew Jones, who made the announcement, said the extension would mean more than 100,000 extra people would gain access to the grant.
"We are determined to keep Britain at the forefront of the technology," Jones said, "by increasing our support for plug-in vehicles to £600 million over the next 5 years to cut emissions, create jobs and support our cutting-edge industries.”
From March 2016, the grant will be split into two categories. Cars with a zero-emissions range of over 70 miles, dubbed Category 1, can receive a grant of £4500. Cars with a shorter zero-emissions range, dubbed Category 2 and 3, will receive £2500. Most plug-in hybrids will fall into Category 2 and 3.
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A price cap is also be introduced, with Category 2 and 3 vehicles costing over £60,000 being ineligible for the grant.
First introduced in 2011 to encourage the uptake of ultra-low emission vehicles (ULEVs) in this country, around 50,000 people have taken advantage of the grant since its introduction, with the choice of available ULEVs in the UK growing five-fold.
The Government also confirmed it will continue to provide help to ULEV owners to help them install a charging point at home. From March 2016, owners can apply for a £500 grant to help cover the installation cost.
The latest announcements are part of the Government's longterm plan to ensure almost all vehicles in the UK are emission free by 2050.
The extension of the plug-in grant was also welcomed by Nissan and Renault.
“Today's decision by Government has reaffirmed its commitment to the uptake of ultra-low emission vehicles," James Wright, Nissan Motor (GB) managing director, said.
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"With Government support and Nissan’s investment of over £420m into electric vehicles in the UK, our British made Nissan Leaf has increased in popularity with many UK customers already enjoying the benefits of zero emission and low cost driving.
"This announcement, together with ongoing infrastructure developments, should see the growth and wider deployment of this technology continue.”
The views were mirrored by those of Ken Ramirez, Renault UK managing director.
“We welcome the significant changes to the grant structure announced today," Ramirez said. "Differentiating Ultra Low Emission Vehicles into three categories and placing a clear £2000 financial benefit for choosing the most environmentally friendly Category One vehicles over the other two categories, is recognition that the UK sees a strong future in zero tailpipe emission vehicles and the air quality benefits they offer.
"The changes to the grant from OLEV will help to encourage even more motorists to consider moving to a zero tailpipe emissions vehicle thanks to its remarkable affordability and to also enjoy the revolutionary driving experience they provide.”
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Jim McGill