Plug-In Grant Changes

Posted Posted on Categories Fleet News

Last week, the Government announced an immediate change to the rates and eligibility criteria for the Plug-in Car Grant, the Plug-in Van Grant and the Plug-in Truck Grant. These include:

• The Plug-in Car Grant has been cut from £3,000 to £2,500 and now excludes models that cost more than £35,000.

• The Plug-in Van Grant has been cut to a maximum of £3,000 for small vans and £6,000 for large vans (2.5t-3.5t GVW).

• The Plug-in Truck Grant, which had provided funding of up to £20,000, has been cut to £16,000 for trucks up to 12.5t GVW, and increased to £25,000 for trucks over 12.5t.

The Government has cited budgetary concerns as a reason for not providing advance notice, claiming that it would not have the finances to meet an upsurge in demand for the grants if an end date was known. It has also said that it wants to re-focus on affordable zero emission vehicles.

Should you have any queries, please contact your account management team or email [email protected]

Changes in Detail

Plug-in Car Grant

From To
Grant Rate 35% of purchase price, up to £3,000 35% of purchase price, up to £2,500
Eligibility Criteria Cars must cost less than £50,000. This is the recommended retail price (RRP), and includes VAT and delivery fees. Cars must cost less than £35,000. This is the recommended retail price (RRP), and includes VAT and delivery fees (see full definition below)

Plug-in Van Grant (N1/Light Commercial Vehicles)

From To
Grant Rate 20% of purchase price up to £8000 (on average this paid out just under £7,000 per van ordered in 2020) 35% of purchase price up to £3,000 for small vans < 2.5 tonnes gross vehicle weight (t GVW)
35% of purchase price up to £6,000 for large vans 2.5-3.5t GVW
Eligibility Criteria Vehicles have CO2 emissions of less than 75g/km and can travel at least 16km (10 miles) without any emissions at all.

Zero emission vans can travel at least 60 miles without any emissions at

Eligible vans have COemissions of less than 50g/km

Eligible vans and trucks can travel at least 96km (60 miles) without any emissions at all.

Plug-in Truck Grant (N2 and N3 Trucks)

From To
Grant Rate 20% of purchase price, up to £20,000 for N2 and N3 trucks (first 200 ordered, limited to 10 per customer) 20% of purchase price, up to £16,000 for small trucks (N2, >3.5t-12t GVW). For the first 250 ordered per FY*, limited to 10 per customer.
20% of purchase price, up to £25,000 for large trucks (N3, >12t GVW). For the first 100 ordered per FY*, limited to 5 per customer.
Eligibility Criteria Trucks can travel at least 16km (10 miles) without any emissions at all.

Zero emission trucks can travel at least 60 miles without any emissions at all

Trucks can travel at least 96km (60 miles) without any emissions at all.

*March 2021 is included in the allocation for FY21-22

OZEV has provided more detail on what the £35,000 RRP price cap for the Plug-in Car Grant includes:

• VAT, including VAT reclaimable by a business

• vehicle manufacturer or dealer’s mandatory extras including delivery charges or administration fees

• the battery cost (including where the battery is leased)

• any non-standard option fitted by the manufacturer or dealer affecting the capacity of the battery, drive train configuration or maximum net power.

It excludes:

• any non-standard option fitted by the manufacturer or dealer which does not affect the capacity of the battery, drivetrain configuration or maximum net power.

• modifications such as ‘police packs’, ambulance/fire engine modifications

• modifications for disabled users

• warranty/insurance and service packages etc

• first registration fee and cost of first licence

• discounts (including rebates).