Today, government announced that the current Plug-in Car Grant (PICG) scheme, which sees motorists offered up to £5,000 off the price of a new electric car or plug-in hybrid vehicle, will continue until at least February 2016 for all categories of vehicle.

The announcement confirms the plug-in car grant will continue at £5,000 for all categories of qualifying ultra low emission vehicle until at least February 2016. This guarantees the current levels of support beyond the milestone of 50,000 grants being awarded, which had previously been identified as a point when grant levels could change. The 50,000 grant threshold is likely to be reached in November 2015.

Further details on the levels of support to be offered under the plug-in car grant after February will be announced shortly after the autumn spending review, which is expected to be published in November 2015.

Manufacturers who submit claims for vehicles to the plug-in car grant portal before the end of February 2016 will be entitled to claim under the current grant levels, provided that the vehicle is registered within nine months. The grant currently provides 35% off the cost of a car, up to a maximum of £5,000.

The Society of Motor Manufacturers and Traders (SMMT) welcomed the news with Mike Hawes, SMMT Chief Executive, stating,

“With British buyers taking to ultra-low emission vehicles faster than anyone else in Europe, the extension of the Plug-in Car Grant is good news. The market for these vehicles remains small, however, so it is essential that government continues to provide effective incentives for their uptake – including the Plug-in Car Grant and other measures.”

On 1 April 2015, the government introduced three grant categories for cars. The categories differentiate between ultra low emission vehicle (ULEVs) on the basis of their CO2 emissions and their zero emission range, whilst retaining a technology neutral approach. The categories are:

  1. CO₂ emissions of less than 50g/km and a zero emission range of at least 70 miles
  2. CO₂ emissions of less than 50g/km and a zero emission range between 10 and 69 miles
  3. CO₂ emissions of 50 to 75g/km and a zero emission range of at least 20 miles

Plug-in car grant BMW i3 picture

Source; SMMT & OLEV

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