The Office for Zero Emission Vehicles (OZEV) has increased the end-user limit for plug-in van grant applications by 50%, from 1,000 to 1,500 per financial year.  

The new limit is effective immediately and has been introduced in response to "market conditions", according to OZEV, which keeps the grant under continual review.

In December 2021 a maximum number of applications was implemented by the Department for Transport as it it wanted to ensure “best value” for money for the taxpayer as well as ensuring the plug-in budgets were protected and distributed as “fairly as possible”.

In the same month the level of the plug-in van grant was cut for small vans (2.5 tonnes gross vehicle weight (GVW) or less) from a maximum of £3,000 to a maximum of £2,500.

For larger vans (2-3.5 tonnes GVW) the grant was reduced from a maximum of £6,000 to £5,000.

Sue Robinson, chief executive of the National Franchised Dealers Association (NFDA), which represents car and commercial retailers across the UK, believes that the order limit extension to 1,500 is positive news for the commercial and van industry.

However, she said: “Whilst this is a move in the right direction, NFDA is concerned that a great deal more could be done to promote and incentivise the transition to electric.

“There is still a deeper-rooted issue with the UK’s charging infrastructure network and this remains a key barrier to entry for many that have concerns on this issue. The Government needs to match the efforts and investments retailers have made in preparing their showrooms, stock and staff for the 2030 deadline.”

The Government withdrew the plug-in car grant (PiCG), which was worth up to £1,500 off an electric vehicle (EV), last June.