William Eichler 16 December 2021

Government criticised for plug-in grant cut

Government criticised for plug-in grant cut  image

The Government is facing criticism for its decision to cut the plug-in car and van grant by up to £1,000 and change the eligibility criteria.

The grant for electric cars is set to go from £2,500 to £1,500. The upper price limit for eligible car models will fall from £35,000 to £32,000.

The grants for large and small vans are also being reduced. These will go from £6,000 to £5,000 and £3,000 to £2,500 respectively.

Transport minister Trudy Harrison said the Department for Transport wanted to focus the grants on more affordable vehicles.

‘The market is charging ahead in the switch to electric vehicles. This, together with the increasing choice of new vehicles and growing demand from customers, means that we are refocusing our vehicle grants on the more affordable vehicles and reducing grant rates to allow more people to benefit, and enable taxpayers’ money to go further.’

Responding to the Mike Hawes, Society of Motor Manufacturers and Traders (SMMT), chief executive, said: ‘Slashing the grants for electric vehicles once again is a blow to customers looking to make the switch and couldn’t come at a worse time, with inflation at a ten-year high and pandemic-related economic uncertainty looming large.

‘Industry and government ambition for decarbonised road transport is high, and manufacturers are delivering ever more products with ever better performance. But we need to move the market even faster – from one in a hundred cars on the road being electric, to potentially one in three in just eight years – which means we should be doubling down on incentives.

‘Other global markets are already doing so whereas we are cutting, expecting the industry to subsidise the transition, and putting up prices for customers. UK drivers risk being left behind on the transition to zero-emission motoring.’

Edmund King, AA president, said: ‘Many drivers and fleets will be recalculating today to see if they can still afford their chosen EV now that the grants and threshold have been cut. With ambitious targets heading into 2030 it seems counterintuitive to reduce incentives although we accept that those purchasing the lower value EVs probably have greater need for assistance.’

SIGN UP
For your free daily news bulletin
Highways jobs

Support Worker - Family Time and Support Service - North

Essex County Council
£26284.00 - £33256.00 per annum + + 26 Days Leave & Local Gov Pension
Support Worker - Family Time and Support Service - NorthFixed Term, Full Time£26,284 to £33,256 Per AnnumLocation
Recuriter: Essex County Council

Care Assistant

Wakefield Council
£21,072.16-£21,407.83
Are you caring, compassionate, and friendly? Wakefield, West Yorkshire
Recuriter: Wakefield Council

Senior Social Worker x2

Wakefield Council
£42,839 - £50,269
Are you passionate about improving the health and well-being outcomes for older people in Wakefield? Wakefield, West Yorkshire
Recuriter: Wakefield Council

Contract Relationship Manager

North Yorkshire Council
£38,220 to £42,839
Are you passionate about the delivery of high-quality health and social care services that improve outcomes for people? Northallerton, North Yorkshire
Recuriter: North Yorkshire Council

Business Services Officer

Derbyshire County Council
£29, 719 - £31, 691
The position offers a varied and interesting workload that will challenge and develop your existing skills base. Derbyshire
Recuriter: Derbyshire County Council
Linkedin Banner