The UK government has significantly reduced financial incentives for electric vehicle (EV) buyers, cutting the plug-in car grant by £500 and lowering the maximum discount available.
Under the new rules, the grant now offers £1,500 (down from £2,000) towards the purchase of new electric cars priced under £32,000. This marks the third reduction in the subsidy since March 2021, when the maximum discount stood at £3,000 for vehicles up to £50,000.
Why the Changes Matter
The Department for Transport (DfT) claims the reductions reflect falling EV prices and growing consumer demand. However, critics argue the move could slow the UK's transition to greener transport.
Key changes include:
- Maximum grant reduced from £2,000 to £1,500
- Price cap lowered from £35,000 to £32,000
- No changes to grants for wheelchair-accessible vehicles
Industry Reaction
Automotive leaders have expressed disappointment, with some warning the cuts could price many buyers out of the EV market. The Society of Motor Manufacturers and Traders (SMMT) called it "a blow to customers looking to make the switch to cleaner vehicles."
Meanwhile, the government maintains its commitment to phasing out petrol and diesel cars by 2030, with £2.8bn still allocated for EV support measures including charging infrastructure.
What Buyers Should Know
Prospective EV purchasers should:
- Check if their chosen model still qualifies
- Compare total ownership costs, not just purchase price
- Consider alternative incentives like lower road tax
The changes took immediate effect, with no transition period for orders already in progress.
