Fleets and businesses that are ordering electric vehicles (EVs) need to know that the Plug-in Car Grant was changed with immediate effect from today (18 March 2021).
The amount of the grant has been reduced from £3,000 to £2,500, while the eligibility criteria is reduced from £50,000 to £35,000.
The Plug-in Car Grant changes in detail
Old grant value
- 35% of purchase price, up to £3,000
New grant value
- 35% of purchase price, up to £2,500
Old grant eligibility
- Cars must cost less than £50,000. This is the recommended retail price (RRP), and includes VAT and delivery fees.
New grant eligibility
- Cars must cost less than £35,000. This is the recommended retail price (RRP), and includes VAT and delivery fees.
Typical cars that have been excluded are those that were priced up to the £50,000 cut off, such as the Tesla Model 3 and the Polestar 2. However, more value led models, such as the Vauxhall Corsa-e, Hyundai Kona Electric (not all models), Volkswagen ID.3 (most models), and one model in the Kia e-Niro range still qualify for the reduced grant.
The Government said it planned to target less expensive models to allow the scheme’s funding to go further and to help more people make the switch to an electric vehicle.
Transport Minister Rachel Maclean, who announced the changes today, said:
“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. 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.”
Mike Manners, Managing Director of CBVC Vehicle Management, added that the changes required perspective:
“While the changes will certainly increase the monthly rentals of those electric company vehicles that now fall outside the grant, it should be remembered that there are still plenty of tax incentives available for businesses that are unavailable to the general public. We don’t see this interrupting the uptake of electric vehicles by company drivers in any way, inconvenient though it may be.”
What if I have a car on order? Will I be affected by the grant change?
- The good news is that dealers and car manufacturers are allowing any orders placed by customers in the 28 days preceding the grant change, but which have not been logged onto the grant portal at the Office For Zero Emission vehicles (OZEV), to claim the grant. However, OZEV will want evidence of the order.
- Those vehicles already in the system prior to the change will be able to claim the grant at the enhanced rate.
- Drivers and fleets that have vehicles on quotation for cars outside the new grant levels will need to be re-quoted. Please contact your CBVC Vehicle Management account manager and we will arrange to do this.
Plug-in Van Grant Changed
There are also changes to the Plug-in Van Grant effective from today (18 March 2021), which may potentially affect commercial vehicle fleets or small business operators.
The Plug-in Van Grant changes in detail are:
- Where previously 20% of the purchase price was available up to £8,000, this has now been changed to 35% of the purchase price up to £3,000 for small vans below 2.5 tonnes GVW; and 35% of the purchase price up to £6,000 for vans with a GVW between 2.5t-3.5t.
- The eligibility criteria has also been changed. Previously those qualifying vans included those with CO2 emissions below 75g/km which had the ability to travel at least 10 miles in zero emission mode; or if an electric van, a range of 60 miles. To qualify for the grant now, vans must have CO2 emissions of 60g/km or less and must be able to travel a minimum of 60 miles with zero emissions.
- The significant casualty of this change in the grant is the Ford Transit Custom PHEV, which used to qualify for the grant. However, the LEVC VN5 range extender van just scrapes in thanks to its 61 mile capability on zero emissions.
If you are affected by these changes, or think you may be, please talk to us on 01283 351200.