UK plug-in grant for EVs and hybrids extended to 2018, but with changes

The government has announced the plug-in grant for electric and hybrid cars is to be extended to 2018, but at a lower amount and with a tiered structure.

Back in August, the UK government announced a temporary extension to the £5k plug-in grant for buyers of electric and plug-in hybrid cars through to February 2016, with the whole scheme up for review.

Well now the plug-grant scheme has been reviewed, and the good news for those planning on buying a ULEV is that the scheme has been extended to 2018, although there is a new structure.

The government has created a £400 million package to back the scheme, with the aim of trebling the number of ULEV cars on the roads, from the 50k or so since the scheme was introduced in 2011, to 150k by 2018.

From March 1 2016, two grant rates will be available, with Category 1 cars – those which can travel more than 70 miles emissions free (basically BEVs and Hydrogen Fuel Cell cars) getting a grant of £4,500, whilst those with a shorter range in category 2 and 3 (mainly plug-in hybrids) eligible for a £2,500 grant.

There is also going to be a price cap for cars in category 2 and 3, with cars costing over £60k ineligible for the grant, although category 1 cars won’t be capped. So if Porsche hurry up with the Mission E you’ll be able to get £4,500 off that.

UK grant to install home charger for electric cars

Also on offer is a grant for having a dedicated charging point fitted at home for owners of ULEVs, with the electric vehicle homecharge scheme (EVHS) able to divvy up £500 – around half the cost of installation.

Transport Minister Andrew Jones said:

The UK is a world leader in the uptake of low emission vehicles and the plug-in car grant has been key to that success. Extending the grant in a sustainable way ensures more than 100,000 people will benefit from financial support when purchasing these cheap-to-run and green cars.

We are determined to keep Britain at the forefront of the technology, increasing our support for plug-in vehicles to £600 million over the next 5 years to cut emissions, create jobs and support our cutting-edge industries.

We’re still not entirely convinced we need the grant, and with car makers now so far down the road with electric and plug-in cars it seems highly likely they would simply cut prices if sales dropped on the back of the removal of the grant.

So rather than looking at the extension of the plug-in grant as supporting car buyers who want to buy a ULEV, perhaps we should think of this as a £400 million support package for the car industry?