- The UK Department for Transport is committing a further £120 million towards growing the EV industry, specifically when it comes to uptake of electric vans, electric taxis, and electric motorbikes.
- The funding, which was confirmed today, also includes the extension of the Plug-in Van Grant for twelve more months – the scheme was previously set to end at the end of March 2025.
- The Plug-in Taxi Grant and Plug-in Motorcycle Grant have also been extended for another year, whilst the Plug-in Wheelchair Accessible Vehicle Grant cap is being raised from £35,000 to £50,000.
Another boost to the UK EV industry
With the extension of the Plug-in Van Grant, businesses will now be able to continue taking off £2,500 from the price of electric vans of up to 2.5 tonnes, and £5,000 off the price of electric vans between 2.5 and 4.25 tonnes. Meanwhile, taxi drivers will continue to be able to take advantage of a £4,000 grant off a new electric taxi.
In addition to the extension of these said grants, the government have also taken the step to reduce what it calls ‘red tape’ around current additional training costs for electric vans. This additional training, which is required for certain electric vans which are a heavier weight than their ICE counterparts, will be scrapped, allowing fleets to more easily switch to electric options.
Notably, there was no mention of a reintroduction of a grant scheme for electric passenger cars – of which the previous scheme was discontinued, back in June 2022. Rumours from last month suggested the government could bring a similar incentive scheme back – specifically on the electric car finance side – but we’re still waiting to hear whether that scheme is still under consideration.
Future of Roads Minister, Lilian Greenwood, commented:
“From van drivers and businesses, to drivers with accessibility needs, bikers and cabbies, today we are making it easier, faster and cheaper for people to switch to electric vehicles.
By making the transition to zero emissions a success, we’re helping to drive growth all over the UK, putting more money in people’s pockets and rebuilding Britain to deliver our Plan for Change.”
