£1,500 in grants for electric cars scrapped for motorists

The government is withdrawing grants for electric cars that offered discounts of up to £1,500 and instead giving the money to taxis and vans, a move that has been criticized by car experts

Close-up of hand connecting power cord to eco-friendly, zero-emission electric car
Electric car subsidies to end, according to government shock update

Grants for new electric cars worth up to £1,500 were scrapped by today which Department of Transport (DfT) has announced.

Drivers could previously charge up to £1,500 for the cost of a plug-in car costing less than £32,000.

The automotive industry and automotive groups criticized the decision.

The AA warned that many motorists who have to wait for a new electric car due to global supply bottlenecks will be left behind.

The DfT spoke of the “success”. Plug-in Car Grant means the government will now “refocus” funding.

The government now wants to encourage users of vehicles such as taxis and vans to switch to electric.

Electric car sales are booming – but now the government has pulled funds for new buyers


Nathan Stirk/Getty Images)

Sales of new all-electric vehicles have increased from fewer than 1,000 in 2011 to nearly 100,000 in the first five months of 2022.

The grant was worth £2,500 when it first launched but was cut to £1,500 in March 2021 before being scrapped for cars from today.

Existing funding applications “will continue to be considered”, according to the DfT.

Transport Secretary Trudy Harrison said: “Government continues to invest record amounts in the transition to EVs (electric vehicles), with £2.5 billion injected since 2020, and has set the most ambitious phase-out dates for new diesel and petrol sales in the main country.

“But government funds must always be invested where they will have the greatest impact if this success story is to continue.

“Having successfully kickstarted the electric car market, we now aim to use plug-in grants to replicate that success with other vehicle types, from taxis to vans and everything in between, to make the switch to zero-emission travel cheaper and easier close. “

From 2030, the sale of new petrol and diesel cars and vans will be banned in the UK.

AA President Edmund King said the grants are “essential for many drivers making the switch from petrol to diesel”.

He continued, “The plug was pulled at the wrong time on this important grant, before many users still waiting for delayed EVs due to global shortages made the switch.

“Drivers, and indeed many fleets planning to switch to electric vehicles, can now step back until they find more money.

“With record prices at the pump and household budgets already stretched, removing the last incentive to switch to electric could stall this important move toward electrification.”

The message comes as gas prices hit a new record high today.

Government figures show the average liter of petrol now costs 182.5p, up from last week’s record high of 174.9p.

Diesel costs are also at an all-time high at 190.4p, up from last week’s 184.9p.

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Fry Electronics Team

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