Plug-in Car Grant Update 2021 | FG Barnes Group | South East England

Plug-in Car Grant Update 2021

FG Barnes Group in South East England

In the UK, new electric vehicles are eligible for a plug-in car grant (PiCG). The Government will put a sum of money towards a purchase of a zero-emission car, creating a cash-saving incentive for buyers to make the switch from standard to electric cars and vans.

The plug-in car grant, as of March 2021, has been cut by £500 from £3,000 to now £2,500, and will only apply to electric vehicles that cost up to £35,000. The Department for Transport has said that the number of EVs costing less than £35,000 has increased by almost 50% since 2019, and more than half of electric cars on the market will still be eligible for the reduced grant.

The Department for Transport added that as the EV market develops further, it expects to see a reduction in vehicle prices as the overall cost of production and batteries will drop.

The Government PiCG covers up to 35% of the cars purchase price, up to a maximum of £2,500 if the car list price is below £35,000. Eligible vehicles must also have CO2 emissions of less than 50g/km, and be able to travel at least 70 miles without emitting any O2. Finally, the vehicle must be on the OLEV’s approved list of cars.

Nearly 11% of new cars sold in 2020 had a plug, compared with 3% in 2019. The Government have indicated in the past that the grant would be reduced over time, although financial support would continue through tax incentives and Benefit-in-Kind company car tax.

Electric vehicles are beneficial to purchasing as, although more expensive to purchase, owners will save money in the long run as electric is cheaper than petrol/diesel. Electric car owners will also benefit from zero emissions and full exemption from the London Congestion Charge. Other benefits can be discovered in our 5 reasons to switch to an EV article here.

Electric vehicles will fall into one of the three categories of low emissions vehicle that the Government uses to determine if a vehicle qualifies for the PiCG as follows:

  • Category 1: Vehicles with a range of 70 miles making zero emissions, and a manufacturer quoted CO2 emissions figure of less than 50g/km
  • Category 2: Vehicles with a range of at least 10 miles making zero emissions, and a manufacturer quoted CO2 emissions figure of less than 50g/km
  • Category 3: Vehicles with a range of at least 20 miles making zero emissions, and a manufacturer quoted CO2 emissions figure of between 50-75g/km

Vehicles that currently include a plug-in car grant that you can purchase from FG Barnes include the MG ZS, MG5, Vauxhall Corsa-e, Vauxhall Mokka-e, Vauxhall Vivaro-e, SEAT Mii, Nissan e-NV200, Nissan LEAF and the all-new Fiat 500e. If you’re interested in going electric this year, please don’t hesitate to get in touch and a member of our team will be happy to help!

New Corsa available from FG Barnes Vauxhall
Nissan LEAF available from FG Barnes Nissan in Guildford Surrey