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Government continues £5,000 grant scheme towards cost of electric cars

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Car buyers are to continue to be able to benefit from £5,000 off the cost of an electric car after the Government announced today it would extend the plug-in grant scheme.

The financial incentive will continue to be available until at least February.

Previously, ministers had announced that grant levels would be reviewed once 50,000 vehicles had been sold, a milestone expected to be reached in November.

As a result, all plug-in cars with CO2 emissions of 75g/km or less will remain eligible for a grant. Grants are available for 35% off the cost of a car, up to a maximum of £5,000 and 20% off the cost of a van, up to £8,000.

Transport minister Andrew Jones said: “The Government is maintaining the current levels of grant, even as we move past the milestone of 50,000 vehicles.

“The UK is now the fastest growing market for electric vehicles in Europe.

"We will continue to invest to help make this technology affordable to everyone and to secure the UK’s position as a global leader.”

The Government recently announced that a minimum of £200 million has been made available to continue the plug-in car grant and this latest news will add extra incentive to private buyers and fleets who were looking to ‘go electric’ in 2015 and 2016.

Further details about how the plug-in car grant will be structured beyond February are expected following the Government Spending Review in November.

Registrations of plug-in cars accelerated rapidly over the first six months of 2015, according to the Government-backed Go Ultra Low campaign, growing 256% against the same period last year and surpassing the 2014 full-year total with six months to spare.

Hetal Shah, head of Go Ultra Low, said: "Continuing the plug-in car grant at current levels is positive news for everyone, as it encourages zero-emission motoring and secures more funding for a greater number of ULEV buyers.

“This announcement demonstrates the government’s commitment to supporting the growth of the ULEV market. If we are to meet ambitious targets for ULEV uptake, continued investment is paramount.”

There is now an unprecedented variety of ULEVs available to UK car buyers, from city run-arounds and family hatchbacks to 4x4s and sports cars, with driving costs from as little as 2p a mile, according to Go Ultra Low.

With new zero emission technology constantly coming to market, such as fuel cell electric vehicles, UK motorists will continue to benefit from the wide-ranging options available, it said.

Go Ultra Low exists to help motorists understand the benefits, cost savings and capabilities of the raft of new ultra-low emission vehicles on the market.

The collaborative campaign is the first of its kind, bringing together a consortium of seven vehicle manufacturers (Audi, BMW, Mitsubishi, Nissan, Renault, Toyota and Volkswagen), Government and the Society Motor Manufacturers and Traders. 

 

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