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The UK government expands its plug-in car, van and truck grant
24 March 2021
The Department for Transport (DfT) and Office for Zero Emission Vehicles has announced that as of March 18 2021, its grant scheme for electric cars, vans and trucks will “target less expensive models and reflect a greater range of affordable vehicles available”.
In order to encourage more people to make the switch to electric, the improved scheme will extend grants of up to £2,500 for electric vehicles on cars priced under £35,000 as opposed to more expensive models “typically bought by drivers who can afford to switch without a subsidy from taxpayers”.
According to the DfT, more than half of electric car models on the UK market are priced under £35,000 and therefore will be eligible for the grant. It has also been confirmed that favourable company car tax rates, which can save drivers over £2,000 a year, and other tax incentives will remain in place.
Transport Minister Rachel Maclean said, “We want as many people as possible to be able to make the switch to electric vehicles as we look to reduce our carbon emissions, strive towards our net-zero ambitions and level up right across the UK.
“The increasing choice of new vehicles, growing demand from customers and rapidly rising number of chargepoints mean that, while the level of funding remains as high as ever, given soaring demand, we are refocusing our vehicle grants on the more affordable zero emission vehicles – where most consumers will be looking and where taxpayers’ money will make more of a difference. We will continue to review the grant as the market grows”.
The grant scheme was first introduced 10 years ago (in 2011) to “stimulate the early market for zero emission vehicles” and since then has provided £1.3billion to assist in the purchase of over 285,000 electric vehicles. However, since 2018, the DfT has been transparent in its intent to reduce the scheme and channel its support for electrification differently - The DfT said, “Today’s changes are the latest step in this”.
We at Marshall Leasing are always interested in the latest news about government support for electrification, and we trust that you find this information useful. Our team of experts would be delighted to assist you with any questions you may have in relation to making the switch to electric. Please do not hesitate to contact us at email info@marshall-leasing.co.uk or call us on 01480 414541.
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