• December 15, 2021

  • Abby Nuttall

  • Electric and Hybrid News

The UK Government have today announced a cut to the grants they provide on the purchase price of electric vehicles (EVs).

Effective as of this morning, when the announcement was made, the grants for cars, vans and motorcycles and mopeds have all been lowered.

This is the second time this year that the government has announced a reduction to the grant with little notice for drivers, they made a similar cut in March that saw the grant amount and eligibility criteria change. The lack of notice has been done in order to be able to help as many drivers as possible and to prevent a surge in applications that reduces this.

Changes to Electric Car Grant

The amount available for each vehicle has dropped from £2,500 to £1,500 on the purchase price of a new electric car.

The eligibility has also changed with cars under £32,000 eligible now rather than the previous £35,000 cap.

The government has advised that support for wheelchair accessible vehicles is being prioritised and the money available on a new EV that is wheelchair accessible will remain at the previous level of £2,500 on vehicles under £35,000.

Changes to Electric Van Grant

The EV grant available for van owners has also been affected.

Small vans, those under 2.5 tonnes, will now be eligible for a £2,500 grant and larger vans, which are between 2.5 and 3.5 tonnes, will now be capped at £5,000. They have also put in place a limit of 1,000 per customer annually.

The government have said that the uptake of van grants in 2021 so far is already 250% higher than 2020 and so the changes to the van grant will help them to maintain a sustainable grant scheme and be able to offer it fairly across all businesses transitioning to zero emission vehicles.

Changes to Electric Motorcycle and Moped Grant

The motorcycle and moped grant will also be changing with a reduction to £500 for new EV motorcycles and £150 for electric mopeds and a price cap of £10,000 purchase price for the bike.

How Will the EV Grant Change Affect New Vehicles

If you have already ordered an electric vehicle then the grant should already have been applied at the point the vehicle was ordered with the manufacturer so there will be no impact on the car you are waiting to receive.

If you have not yet ordered your new EV then you will now have the new lower rates applied to your purchase price and the vehicle will now need to fit the new price eligibility criteria. 

With a lease vehicle the grant is applied to the cost of the vehicle and the benefit passed onto you through lower rentals so you will still receive it if applicable.