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What is the government plug-in car grant and am I eligible?

Features | Published: | Last Updated:

The government has announced changes to grants for zero-emission vehicles – here’s what you need to know.

Electrification is on the rise with more and more manufacturers now offering either all-electric or hybrid versions of their cars with the goal of reducing tailpipe emissions.

However, with batteries being expensive and this being a relatively new technology, electrified models tend to cost more than their traditionally fuelled counterparts.

Therefore, the government offers a plug-in car grant (PICG) to help incentivise buyers into these models. Since 2018, only all-electric models have been eligible for money off, but this year’s Spring Budget saw further changes introduced. Here’s what you need to know…

How much is the grant?

Unfortunately, citing the increasing uptake of EVs, the government has knocked £500 off the grant, which now sits at £3,000.

However, various manufacturers have pledged to top that back up by offering a £500 contribution on EV orders. These include DS, Peugeot, MG and Renault, though these offers are for a limited time only.

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What cars are eligible?

Since 2018, no hybrid vehicles are eligible for the grant, with rules effectively meaning only all-electric vehicles are included. A new rule has been introduced that also excludes vehicles that cost more than £50,000.

Electric vehicle charging
(Ionity)

The government lists every eligible car on its website in case you’re not sure about a particular model though, at the time of writing, this has not been updated to exclude cars, such as the Tesla Model S and Jaguar I-Pace, which are now left out for being too expensive.

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What about the van, taxi and motorcycle grant?

Nissan LEAF Charging
(Nissan)

Nothing has changed on this front, meaning you can still get up £8,000 off vans, up to £20,000 off large vans and trucks, up to £7,500 off taxis, and up to £1,500 off motorbikes – providing they are zero-emission or have a set electric range, of course.

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