Plug-in car grant extended until March 2018
The scheme will be split into two rates - £4,500 and £2,500 - with over £400 million to be invested to promote plug-in vehicles
The UK plug-in car grant has been extended until end of March 2018, and will now include hydrogen cars for the first time. The Government will back the scheme with a £400million package, which is expected to treble the amount of ultra-low emissions vehicles on British roads.
From 1 March 2016 onwards the grant will be split into two separate rates, as opposed to the current £5,000 contribution. Vehicles classed as Category 1 must have a zero-emissions range beyond 70 miles, and are eligible for a £4,500 grant. This includes not just electric but also hydrogen cars.
Category 2 and 3 vehicles are those with a zero-emissions range less than 70 miles (such as plug-in hybrids) and will receive £2,500 - half of what they are entitled to today.
However, Category 2 and 3 vehicles with a list price over £60,000 will not be eligible for the grant, while Category 1 vehicles with a list price above £60,000 remain eligible.
The Government says this is to encourage the adoption of more zero-emissions vehicles and maximise the number of everyday motorists who can take advantage of the scheme. It's expected over 100,000 people will benefit from the grant over the coming years.
Since it was created in 2011, over 50,000 people have already taken advantage of the plug-in car grant that offers £5,000 off for ultra-low emissions vehicles (ULEV) that are charged via electricity and emit less than 75g/km.
In 2011 just five cars were eligible for the scheme in the UK, while today buyers have a choice of over 29 vehicles. The UK has grown into the fourth largest ULEV market in the world.
Those looking to install a charging point in their home will also benefit from the electric homecharge scheme (EVHS). From 1 March 2016, owners will receive £500 off the cost of installing a home charging point.
Transport Minister Andrew Jones said: “The UK is a world leader in the uptake of low emission vehicles and the plug-in car grant has been key to that success. Extending the grant in a sustainable way ensures more than 100,000 people will benefit from financial support when purchasing these cheap-to-run and green cars.
“We are determined to keep Britain at the forefront of the technology, increasing our support for plug-in vehicles to £600 million over the next 5 years to cut emissions, create jobs and support our cutting-edge industries."
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