Company Car Today

The Government has announced immediate changes to the plug-in car grant, cutting the amount offered by £500 to £2,500 and only including vehicles priced at under £35,000.

The £15,000 reduction in eligible vehicles rules out, subject to manufacturers adjusting pricing to get below the threshold, the BMW i3, Citroen e-SpaceTourer, Ford Mustang Mach-e, Kia Soul, Lexus UX300e, Mercedes B-Class electric, Peugeot e-Traveller, Polestar 2, Tesla Model 3 and Vauxhall Vivaro e-Life. The longer-range Hyundai Kona electric, Kia e-Niro and Nissan Leaf also lose the grant, along with higher-specification versions of the Citroen e-C4, DS 3 Crossback, Hyundai Ioniq, Peugeot e-2008 and Volkswagen ID.3.

The Government said the changes will allow the funding to last longer and be available to more drivers, and claimed the higher priced vehicles now taken out are “typically bought by drivers who can afford to switch without a subsidy from taxpayers.

“The increasing choice of new vehicles, growing demand from customers and rapidly rising number of chargepoints mean that, while the level of funding remains as high as ever, given soaring demand, we are refocusing our vehicle grants on the more affordable zero emission vehicles – where most consumers will be looking and where taxpayers’ money will make more of a difference,” said transport minister Rachel Maclean. She also said the Government will continue to review the grant as the electric vehicle market grows.

So far, almost £1.3bn has been spent in plug-in vehicle grant funding for the purchase of 285,000 vehicles, and the Government also confirmed that other incentives including company car tax rates, will stay in place.

“We want as many people as possible to be able to make the switch to electric vehicles as we look to reduce our carbon emissions, strive towards our net-zero ambitions and level up right across the UK,” said Maclean.

The plug-in van grant has also been changed, and will no longer offer the £8,000 help on plug-in hybrid models, making the Ford Transit Custom PHEV and Mitsubishi Outlander Commercial PHEV more expensive overnight. Vehicles must now be under 50g/km and have a zero-emission range of 60 miles, well outside the ability of any current pug-in hybrid.
The grant has also been split in two, with only vans between 2500kg-3500kg still getting the £8,000 amount, and those under 2,500kg – the Maxus eDeliver 3 shirt wheelbase, Nissan e-NV200, Renault Kangoo ZE and Renault Zoe van, seeing their grant level cut from £8,000 to £3,000.

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