Government grants: What's changed?
The Government is changing the rates and eligibility criteria for the Plug-in Car Grant (PICG), the Plug-in Van Grant (PIVG) and the Plug in Motorcycle Grant (PIMG). They are also introducing some other changes which apply across all grant schemes.
Summary of the key changes:
- Electric Grant for cars reduced by £1,000 to a maximum of £1,500 per car.
- P11d maximum qualifying cost allowance reduced by £3,000 for cars. This means fewer cars will now be covered.
- PHEV car grants have been pulled entirely - previously PHEVs with an electric range of more than 70 miles and less than 50g/km in CO2 emissions qualified for a grant.
- Electric Grant for vans reduced by either £500 or £1,000 (depending on gross vehicle weight).
- Businesses can only claim a maximum of 1,000 grants in total each financial year, before losing access to the grant.
Plug-in Van Grant (N1/Light Commercial Vehicles)
Grant rates changed from:
- 35 percent of purchase price up to £3,000 for small vans < 2.5 tonnes gross vehicle weight (t GVW)
- 35 percent of purchase price up to £6,000 for large vans 2.5 to 3.5t GVW
to
- 35 percent of purchase price up to £2,500 for small vans < 2.5 tonnes gross vehicle weight (t GVW)
- 35 percent of purchase price up to £5,000 for large vans 2.5-3.5t GVW
There are no changes to grant rates for vehicles over 3.5 tonnes.
New Plug in Van Grant Limits
To ensure that the Plug in Van Grant scheme is sustainable and to ensure fair distribution of grant across stakeholders, we are introducing a new limit on the total number of grants available to each business, organisation or individual through the Plug in Van and Truck grants.
Each business, organisation or individual may receive up to 1,000 grants each financial year (1st April to 31st March). Limits apply to end customers and not to lease companies. Orders placed on the portal before 07:00am on 15th December 2021 will not be counted towards this year’s limits.
Existing per customer and total limits on Plug in Truck Grant orders will continue to apply.
Plug-in Motorcycle Grant
Grant rates changed from:
- 20 percent of purchase price up to £1500 for Mopeds
- 20 percent of purchase price up to £1500 for Motorcycles
to
- 35 percent of purchase price up to £150 for Mopeds
- 35 percent of purchase price up to £500 for Motorcycles
Eligibility criteria changed
Mopeds and motorcycles must cost less than £10,000. This is the recommended retail price (RRP) including VAT and delivery fees (full price definition will be provided in the Plug in Motorcycle Grant Application guidance when it is updated).
