Government un-plugs Plug-in Car Grant

The Government has announced it is closing the Plug-in Car Grant (PiCG) from 14th June as it changes its focus to improving the EV charging network across the UK. If you’ve ordered a new vehicle with us recently, here is everything you need to know.

First of all, if you have already placed your order but have not received your vehicle, do not worry. All existing applications for the grant will be honoured. OZEV will also accept orders that were placed a few days ago but not yet entered into the system, further details still to be published on this but that’s good news if you have just placed an order.

Introduced in 2011, the PiCG was launched as an incentive to bridge the upfront price difference between ultra-low emission cars and their ICE counterparts. Initially it offered £5000 or up to 20% off the purchase price of a new car. This was reduced and capped further in December last year to £1500, so this latest announcement has been expected since. 

Electric car drivers will still continue to benefit from incentives such as zero road tax and favourable company car tax rates, saving drivers more than £2000 a year. The Government has also advised that there are significant savings in running costs for electric cars when compared to a diesel or petrol equivalent – often exceeding the current £1500 value of the grant.

Toby Poston, Director of Corporate Affairs at BVRLA, has said of the announcement: “Although the grant was small and only a handful of electric vehicles were eligible, its withdrawal will be a symbolic moment that could damage confidence in the fragile EV market.

“Most demand for EVs is being driven by the favourable Benefit-in-Kind tax rates available to workers in company car or salary sacrifice schemes. As inflation surges and business and consumer confidence falls, Government needs to maintain these incentives if the country is to have any chance of hitting its ambitious decarbonisation targets.”

While this announcement is something that will be no surprise to many, it is a turning point in the Government’s plans for the road to zero. With the new focus being concentred on the EV charging network, this will hopefully provide drivers some reassurance that the infrastructure can keep up with demand. As well as re-directing funds towards service and delivery vehicles such as taxis and vans.

If you have requested a quote for an order but not yet placed it or if any questions about how this affects your recent or future orders, do not hesitate to contact your dedicated account manager.

Further information on the announcement can be found here: