Government Cuts Electric Car Grant

Mar 22, 2021

Government Cuts Electric Car Grant From £3000 to £2500

For the past decade, the government has been slowly pushing for UK drivers to swap out their gas-guzzling vehicles for all-electric vehicles, with the hope that they will be completely replaced in the next 10 years or so. However, the government bizarrely announced today that they are going to cut the electric car grant incentive from £3000 pp to £2500, whilst also announcing that the grant won’t be eligible for electric vehicles worth more than £35,000. This recent change has hit everyone by surprise, as there is less of an incentive for drivers to purchase an electric car; as one of the key buying points was the fact that the electric car grant covered a home charging device installation. The new grant will come into effect on the 18th of March 2021.  

What Exactly Is The Electric Car Grant?

The customer can get a discount on the price of brand new low-emission vehicles through a grant the government gives to vehicle dealerships and manufacturers. The government claim’s that the grant will still cover over half of the electric vehicles currently available on the market.

Vehicles Eligible For The Grant

The amount of the grant depends on which category the vehicle is in. The 7 categories are:

  • cars
  • motorcycles
  • mopeds
  • small vans
  • large vans
  • taxis
  • trucks

Not all low-emission vehicles will get a grant. Only vehicles that have been approved by the government are eligible for the grant. 

Read more about it at

Why Have They Changed It?

The Government has put this into place as a means to “reflect a greater range of affordable vehicles available”, and to help funding go further as more drivers make the switch to electric cars. The government has said that this new change will make the funding last longer to aid drivers in the future. As a result of this change, you may find that drivers opt for cheaper electric cars, as most of the electric vehicles on the road now tend to be Tesla’s and other expensive vehicles. 

Criticisms Of The Governments Actions

So, what are the criticisms of these new changes?

SMMT Chief, Mike Hawes said: “New battery-electric technology is more expensive than conventional engines and incentives are essential in making these vehicles affordable to the customer. Cutting the grant and eligibility moves the UK even further behind other markets, markets that are increasing their support, making it yet more difficult for the UK to get sufficient supply.

It may seem confusing to some, that the government has been continuously pushing for the development of the EV market, yet stunt its growth with changes such as these. Whilst the new change has been made as a means of protecting drivers in the future, It may actually affect the growth of the EV sector as there is less of an incentive for drivers to purchase an all-electric vehicle. All in all, it’s important that drivers of the future also experience the benefits of the grant.