Changes to car and van plug-in grants

15th Dec 2021

Plug in grant changes

The Government is today changing the Plug-in Car Grant (PICG), the Plug-in Van Grant (PIVG) and the Plug in Motorcycle Grant (PIMG) rates and eligibility criteria. They are also introducing some other changes which apply across all grant schemes.

A 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 (in short fewer cars will now be covered)
  • PHEV car grants pulled entirely, previously PHEVs with an Electric range of more than 70 miles and sub 50 g/km Co2 did qualify
  • 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

For more information on eligibility take a look at the Government website here.


Plug-in Car Grant

Grant rates changed from:

35% of purchase price, up to £2,500 to: 35% of purchase price, up to £1,500

Eligibility criteria changed from:

  • Cars must cost less than £35,000. This is the recommended retail price (RRP) inclusive of VAT and delivery fees.
  • These vehicles have CO2 emission of less than 50g/km and can travel at least 112km (70 miles) without any emissions at all, to: 
  • Cars must cost less than £32,000. This is the recommended retail price (RRP), inclusive of VAT and delivery fees
  • These vehicles have no tailpipe CO2 emissions and can travel at least 112km (70 miles)
 

Plug-in Van Grant (N1/Light Commercial Vehicles)

Grant rates changed from:

35% of purchase price up to £3,000 for small vans < 2.5 tonnes gross vehicle weight (t GVW)
35% of purchase price up to £6,000 for large vans 2.5-3.5t GVW

To:

35% of purchase price up to £2,500 for small vans < 2.5 tonnes gross vehicle weight (t GVW)
35% 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 1000 grants each financial year (1 April to 31 March). Limits apply to end customers and not to lease companies. Orders placed on the portal before 07:00 on 15 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% of purchase price up to £1500 for Mopeds 
20% of purchase price up to £1500 for Motorcycles

To:

35% of purchase price up to £150 for Mopeds
35% 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).

 

Need advice?

If you want to talk to us about how these latest announcements may affect your fleet, get in touch with your PVM Account Manager or you can also contact us using the button below.