News article

Changes to the Plug-in Car Grant

15 October 2018

Government announces upcoming changes to the grant rates available under the Plug-in Car Grant

The Plug-in Car Grant was established in 2011 to support the early market for ultra low emission vehicles, offsetting the higher upfront purchase costs of these vehicles.

The changes will focus support on zero emission models such as pure electric and hydrogen fuel cell cars, with the grant level being set at £3,500 from 9 November 2018.

Two out of three new cars bought using the current grant are plug-in hybrids. With this segment becoming more established, the grant will no longer support the purchase of plug-in hybrids.

New grant levels and eligibility

Ultra low emission vehicles are placed into three different categories on the basis of their CO2 emissions and their zero emission range.

These categories are:

  • category 1 – CO₂ emissions of less than 50g/km and a zero emission range of at least 70 miles
  • category 2 – CO₂ emissions of less than 50g/km and a zero emission range between 10 and 69 miles
  • category 3 – CO₂ emissions of 50 to 75g/km and a zero emission range of at least 20 miles

After the change in rates, the grant rates will be as follows:

  • the grant rate for category 1 vehicles will move from £4,500 to £3,500
  • category 2 and 3 vehicles will no longer be eligible for the grant

View a list of currently eligible vehicles, and the categories into which they fall.

The new grant rates will be implemented at 23:59 on 9 November 2018, unless order limits are reached first. The limits (for the whole of the UK) are:

  • 3,000 new category 1 orders
  • 6,000 category 2 and 3 orders

Email updates on limits will be available during the transition period on the numbers of orders remaining - you can register here.

Plug-in vans, taxis and motorcycles that are currently eligible for a grant will continue to be so after 9 November 2018.

All ultra low emission vehicles remain eligible for the electric vehicle homecharge scheme grant, even if they are no longer eligible to receive the plug-in car grant.

GOV.UK has full details on the upcoming changes to the Plug-in Car Grant.