Car/Van Plug-in Grant Reduced & Eligibility Criteria Updated
The Plug-in Car Grant (PiCG) and Plug-in Van Grant (PiVG) has had their grant rates cut and the eligibility criteria has been updated before you can apply.
- 2021 saw zero-emissions cars sales up by 89% compared to 2020
- It also saw plug-in van sales up by 250% compared to 2020
- Government has decided to reduce grant rates due to higher EV sales
- PiCG up to 35% maximum has been cut from £2,500 to £1,500
- PiCG eligibility criteria is now £32,000 RRP or less, which is a reduction of £3,000
- Some hybrid cars are no longer eligible for the grant
- PiVG up to 35% maximum has seen 2.5 tonnes or less small vans cut from £3,000 to £2,500
- PiVG up to 35% maximum has seen 2.5 - 3.5 tonnes large vans cut from £6,000 to £5,000
Car/Van Plug-in Grant reduced & eligibility criteria updated
Following a successful year of electric vehicles sales, even with lockdown and covid constantly looming, the government has decided to cut the Plug-in Car Grants (PiCG) and Plug-in Van Grants (PiVG) and has changed the eligibility criteria.
Sales of electric vehicles (EVs) have skyrocketed since 2021 began. With zero-emissions cars seeing a sales increase of around 89% compared to 2020 and plug-in vans orders more than 250% higher, as reported by the gov.uk website.
In the last 3 months, nearly 1 in 4 new cars sold were plug-ins. 1 in 10 cars sold in 2021 were plug-ins and EVs are more affordable than ever with cars like the Volkswagen ID.3 Hatchback or the Hyundai Kona.
Due to the soaring demand for EVs, the government has decided to refocus the grants to make better use of taxpayers money.
What are the car & van plug-in grants?
The car & van plug-in grants are a government-funded scheme that has helped to support EV buyers for over a decade now. Over 500,000 EVs in the past 10 years have been purchased through the use of a plug-in grant.
The grant aimed to offer money funded by the government to reduce the price of your EV and to give the public initiative into making the switch to more environmentally-friendly vehicles.
What is changing for the Plug-in Car Grant (PiCG)?
1) The PiCG that originally gave customers up to 35% off the purchase price of an EV, up to a maximum of £2,500, is now getting cut by £1,000 to just a maximum of £1,500.
2) The PiCG eligibility criteria is changing. The original criteria meant cars up to £35,000 recommended retail price (RRP) would be eligible. Now it has been cut by £3,000 to cars up to £32,000 RRP or less.
3) Hybrid electric cars which had CO2 emissions of 50g/km or less and could travel at least 70 miles (112km) without any emissions, are no longer eligible for the plug-in grant.
What is changing for the Plug-in Van Grant (PiVG)?
1) The PiVG that originally gave customers up to 35% off the purchase price of a smaller plug-in van, up to a maximum of £3,000, is now getting cut by £500 to just a maximum of £2,500. This is for small vans with up to 2.5 tonnes gross vehicle weight (GVW) or less.
2) The PiVG that originally gave customers up to 35% off the purchase price of a larger plug-in van, up to a maximum of £6,000, is now getting cut by £1,000 to just a maximum of £5,000. This is for larger vans between 2.5 to 3.5 tonnes gross vehicle weight (GVW).
3) There are no grant rate changes to vehicles over 3.5 tonnes.
What date do the new changes come into effect?
The changes apply from 7am Wednesday, December 15 2021.
The Office for Zero-Emission Vehicles (OZEV) says that "it will allow dealers or vehicle manufacturers to claim for any orders that were placed by customers in the seven consecutive days before the grant rate change which were not logged on the grant portal".
This means that any orders placed between 12.01am on December 8 and 11.59pm on December 14 will be eligible for the previous grant criteria. Anything over that will not be eligible and will be recognised under the new grant changes.
For more information please visit the Low emission and electric vehicles section on the gov.uk website.
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