EV grant scheme closes

14 June 2022

The government is today closing the plug-in car grant scheme to new orders. It says the initiative has supported the sale of nearly half a million electric cars, with numbers of fully electric models rising from less than 1,000 in 2011 to almost 100,000 in the first five months of 2022.

Battery and hybrid electric vehicles (EVs) apparently now make up more than half of all new cars sold and fully electric car sales have risen by 70 per cent in the last year, the government says, representing one in six new cars joining UK roads.

However, it should be kept in mind that the second hand market in petrol and diesel vehicles has been absolutely booming. And government statistics show that, at the end of September 2021, there were a total of 39.2 million licensed vehicles in Great Britain. 

The focus is now shifting towards tackling barriers to EV adoption, including the public charging network. £300m in grants will also help to fund sales of plug-in taxis, motorcycles, vans and trucks and wheelchair accessible vehicles. 

In making its announcement, the government says that the savings in running costs for electric cars compared against petrol or diesel equivalents can exceed the current £1,500 value of the grant, and that EV drivers will continue to benefit from incentives like zero road tax and favourable company car tax rates. 

However, there’s no getting away from the fact that the relative financial savings will decrease, especially if future electricity costs rise. They have already done so sharply in recent months and are likely to again when the price cap is reviewed in October. 

Transport Minister Trudy Harrison said that the motor industry currently offers 24 zero emission cars priced under £32,000 and that the cost of monthly purchase and rental schemes has fallen.