Plug-in Car Grant (PiCG) for electric cars SCRAPPED

The UK government has announced that the Plug-in Car Grant (PiCG) for electric cars is scrapped from today, 14 June 2022.

We’ve had a grant for buyers of electric cars for more than a decade, although it’s been regularly reduced as EV sales rise, with the last cut in December meaning only cars selling for £32k or less eligible and then only for a £1,500 grant.

But the ongoing reduction of the PiCG seemed to have little or no effect on EV sales – which have risen from just 1,000 in 2011 to 100,000 in the first five months of 2022 – so the government has called time on the grant for cars, which is scrapped with immediate effect from today (14 June 2022).

Transport Minister Trudy Harrison said:

The government continues to invest record amounts in the transition to EVs, with £2.5 billion injected since 2020, and has set the most ambitious phase-out dates for new diesel and petrol sales of any major country. But government funding must always be invested where it has the highest impact if that success story is to continue.

Welcome though the grant has been for EV buyers, it seems highly likely its scrapping will have little impact on EV sales, especially as the majority of EV sales are to businesses which will continue to get big taxk breaks on EVs, not least the BIK rates.

The government is now focussing on boosting sales of plug-in taxis, motorcycles, vans and trucks and wheelchair accessible vehicles with £300 million of grant funding, and expanding the public chargepoint network.

If you’ve already applied for the grant, or have bought an EV in the last two days but not yet applied, the sale will still qualify for the £1,500 grant.