Plug-In Van Grant for Electric LCVs Cut Again • Professional Van

Without any notice, the government has slashed the grants available to buyers of electric and plug-in vans and limited the number of grants available.

The plug-in van grant was introduced in 2012, helping to cut the price gap between the cost of ultra-low emission light commercial vehicles and their traditional diesel-powered counterparts. Originally the grant covered 20% of the list price, up to a maximum of £8,000.

In March of this year, that was cut to a maximum of £6,000 for large vans (2.5-3.5 tonnes) with smaller vans able to benefit from maximum support of £3,000, as long as they had CO2 emissions of less than 50g/km and can travel at least 60 miles on electric power alone.

This morning, the Department for Transport, the Office for Zero Emission Vehicles, and Trudy Harrison MP announced that those rates will be reduced further, with immediate effect.

The new rates see a 16.7% cut from the plug-in grant available, with large vans limited to £5,000. Smaller van support is cut to £2,500. The grant covers up to 35% of the list price up to the limit, although no van on sale in the UK is cheap enough for that to become an issue.

A new restriction limits the number of grants available to each business to 1,000 per financial year.

Any customer orders placed before 11:59 pm on 14 December will be supported at the more generous rate, even if they’ve yet to be recorded on the plug-in vehicle grant portal.

The government explained that electric van uptake is “accelerating at pace, with grant orders up 250% this year compared with 2020.

“Last year, the government announced a further £582 million to continue the plug-in grants until at least 2022 to 2023, and more money was allocated at the Spending Review in October. This funding remains in place. However, with demand so strong, it is right that we seek to focus the grants, which are funded by the taxpayer, on the areas where they will have the most impact and where the market still needs government support.”

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Phil Huff

Phil Huff, a seasoned automotive journalist since 2011, specialises in new car and van launches for national and regional newspapers, magazines, and online platforms. As the editor of light commercial vehicle publications Professional Van and Professional Pickup, Phil delivers high-quality content for a UK audience of LCV owner-operators and small business users.