The Plug-in Car Grant (PICG) aims to reduce the cost of eligible electric, plug-in hybrid and hydrogen cars. The scheme is part of a wider initiative to promote the uptake of next generation, ultra-low emission vehicle technologies.

Plug-in hybrid vehicles are among the cleanest on the road, and can deliver significant CO2 savings compared to petrol/diesel cars. These vehicles receive support through lower car tax rates, grants for charging infrastructure and local incentives (such as free parking).

The government has announced changes to funding to support purchasing the next 35,000 of the cleanest vehicles. For the last seven years, the PICG has provided a discount to the price of over 160,000 new ultra-low emission vehicles.

The changes to the grant will mean that the grant rate for Category 1 vehicles will move from £4,500 to £3,500 and Category 2 and 3 vehicles will no longer be eligible for the grant. These changes reflect the ongoing success of the PICG in increasing uptake of electric vehicles, a key part of the government’s Road to Zero Strategy.

By stimulating the uptake of electric, plug-in hybrid and hydrogen powered vehicles, the grant will contribute to reducing carbon and pollution emissions by road vehicles, helping to meet national targets for carbon reduction, and decrease the future manufacturing and purchase cost of ultra-low emission vehicles.

The PICG has helped the plug-in hybrid market become more established, and the government will now focus its support on zero emission models like pure electric and hydrogen fuel cell cars.

The grant is available to individuals and businesses in the UK. Vehicles must be pre-approved and registered in the UK. Both commercial and private buyers are eligible to purchase vehicles under the scheme.

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