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UK Government Reduces the Plug-in Car Grant (PiCG) Again

Changes to the Plug-in Car Grant introduced from 7am GMT on Wednesday 15th December 2021.
Maximum grant reduced from £2,500 to £1,500 for cars, from £3,000 to £2,500 for small vans, and from £6,000 to £5,000 for large vans.
Cars must cost less than £32,000 RRP including VAT and delivery to be eligible for the grant, a reduction from the £35,000 RRP previously.

Changes to the Grant for Cars


Grant rates changed from:

  • 35% of the purchase price, up to a maximum of £2,500

To:

  • 35% of the purchase price, up to a maximum of £1,500

Eligibility criteria changed from:

  • Cars must cost less than £35,000. This is the recommended retail price (RRP) inclusive of VAT and delivery fees.

  • These vehicles have CO2 emissions of less than 50g/km and can travel at least 112km (70 miles) without any emissions at all.

To:

  • Cars must cost less than £32,000. This is the recommended retail price (RRP), inclusive of VAT and delivery fees.

  • These vehicles have no tailpipe CO2 emissions and can travel at least 112km (70 miles)


Changes to the Grant for Vans


Grant rates changed from:

  • 35% of the purchase price up to £3,000 for small vans < 2.5 tonnes gross vehicle weight (GVW).

  • 35% of the purchase price up to £6,000 for large vans 2.5-3.5t GVW.

To:

  • 35% of the purchase price up to £2,500 for small vans < 2.5 tonnes gross vehicle weight (GVW)

  • 35% of the purchase price up to £5,000 for large vans 2.5-3.5t GVW

There are no changes to grant rates for vehicles over 3.5 tonnes.


Eligibility changes:

  • Limits are being introduced on the number of van grants that can be applied for. Each business, organisation or individual may receive up to 1,000 grants each financial year (1 April to 31 March). Limits apply to end customers and not to lease companies. Orders placed on the portal before 07:00 on 15 December 2021 will not be counted towards this year’s limits.


The UK Government is likely to continue to reduce the grants available when purchasing electric vehicles as sales continue to increase. As has happened this time, these changes will probably be introduced without warning to prevent mass ordering of vehicles prior to the reduced grants coming into effect.


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