Plug-in Car Grant (PiCG) for electric cars CUT to £1,500 – price cap now £32k

The Plug-in Car Grant to subsidise electric cars is cut again and is now just £1,500, and only for EVs with a list price of under £32,000.

It was only in March that the UK Government cut the subsidy for buyers of electric cars from £3,000 to £2,500, and lowered the price cap for eligible cars from £50,000 to £35,000.

Now, and so far with no official release issued, it seems the PiCG is being cut again, with Fleet News reporting on an email sent to grant portal users by Office for Zero Emission Vehicles (OZEV) outlining the new rates and their immediate implementation.

The new rates see the PiCG reduced from £2,500 to £1,500 and the eligibility cap cut from £35,000 to £32,000, and the new rates apply from today, 15 December 2021 – with no grace period.

It’s not exactly the best news for anyone planning an EV purchase, but it’s an inevitable consequence of the increase in EV sales – up almost 90 per cent this year.

When the PiCG was last cut in March, car makers were quick to respond to the lowered price cap for eligibility by lowering prices for EVs, but it seems unlikely many will bother to do the same this time around, especially as there is currently more demand than supply.