Plug-in Car Grant extended by 18 months

Acknowledging car production supply issues and the conflict in Ukraine, the Department for Transport (DfT) has announced an extension to the Plug-in Car Grant (PiCG) for dealer orders by 18 months.

The grant, which saved customers up to £1500 on the purchase of EVs priced at less than £32,000, was axed with immediate effect earlier this year. The PiCG will now apply to car orders placed by dealers between 14 June 2021 and 31 March 2023, because of extended lead times.  However, the consumer window for the grant will not be extended the DfT has confirmed.

A recent press release from the DfT says:

“We have temporarily extended the Plug-in Vehicle Grant delivery period in recognition of the continuing delays in manufacturing supply chains, due to ongoing semiconductor shortages and the conflict in Ukraine,”
“The temporary 18-month extension covers all Plug-in Vehicle Grants logged on the system between 14 June 2021 and 31 March 2023. We will continue to work with industry and monitor issues impacting the supply chain issues.”

The grant has helped increase the sales of fully electric cars from less than 1,000 in the whole of 2011 to 137,498 in the first eight months of 2022 alone. Electric car sales have risen 70 per cent in the last year and now make up one in six new cars sold in the UK.

The decision to axe the grant back in June wasn’t well received by the industry, with concerns it would slow the rate at which new and used EVs became more affordable for drivers.

Once the extension period ends, money earmarked for the grant scheme will now be redirected to other areas where electrification needs additional support, such as taxis, vans, motorbikes and in the creation of the charging infrastructure to support the growing numbers of battery electric vehicles (BEVs) on British roads.