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Electric vehicle incentives: do they exist?

Electric vehicle being charged

It is hard to escape the climate change issue. The subject constantly dominates headlines around the world - and with good reason. If the scientific models are at all accurate, then the event itself will be even more difficult to escape from than those headlines. It is a reckless government indeed that swims against the tide of public concern.

Vehicles are, without doubt, a major source of pollution and the gases that contribute to climate change; therefore, one might expect clear government policies to encourage drivers to adopt green habits and abandon those that make things worse. What are we actually seeing?

Where is the information?

For a start, it isn't as easy as you'd think to find a comprehensive list of all current grants and incentives for drivers to move from petrol/diesel to electricity. It seems to us that a government-maintained hub, that can be easily found, navigated and understood, would be an essential resource. Such a resource should include incentives from independent organisations (charities, corporations etc) as well as those administered by government. While there may be such a destination on the government's website, so far we haven't been able to find one. The closest thing to it (but not very close) is the Plug-In Grant Portal.

So where are we?

We do our best to ensure that the following information is accurate and current at the time of this page's latest revision, shown at the end of the article.

There are a number of approaches to persuading people to go green: some have been implemented in the past, some are currently operating and others have been planned or at least proposed.

Grants

Plug-In Grant for purchasing electric vehicles

Car buyers have been disappointed by the ending of the Plug-In Grant that was previously available to subsidise the prices of new electric cars by up to 35% or £2,500. The level of subsidy was dependent on which of three driving-range/emissions categories the vehicle was in but in most cases it was up to 35%. The grant for electric cars was discontinued in June 2022.

Although the Plug-In Grant has ended for cars, it is available for approved vehicles of other types. Buyers of zero-emissions wheelchair-accessible vehicles, taxis, vans/trucks and motorcycles may apply for the grant so long as their purchase meets the required criteria. More information on qualifying criteria and the application process may be found on the government's Plug-In Grant Portal that we linked to above.

The end of the scheme for cars has been met with some backlash, although the government had always set an end date of 2022/2023. There has also been criticism that much of the administrative burden of the remaining schemes is placed on dealers and customers.

EV Chargepoint Grants for installing charging sockets

Grants of up to £350 or 75% of the cost to buy and install an EV chargepoint are available but only for some people. Unfortunately, there is no longer a grant for owner-occupiers of houses. The scheme for house owners was discontinued at the end of March 2022 as part of a scaling back of EV incentives, which seems a little perverse considering the government's supposed commitment to reducing fossil fuel emissions.

The procedure for claiming a grant varies depending upon the status of the applicant and there are different processes for landlords and for flat owner-occupiers and people living in rented accommodation. The application methods for all categories are linked from this government page.

Tax reductions

Not much incentive here, unfortunately. While electric vehicles have been exempt from vehicle excise duty ("road tax"), that is set to change according to plans set out in the Conservative government's 2022 Autumn Statement.

From April 2025, owners of newly registered electric cars will begin to pay road tax. In the first year they will pay the minimum rate of £10 but in subsequent years that will rise to the standard £165. Furthermore, while electric vehicles are currently exempt from paying the annual Expensive Car Supplement (paid on vehicles costing over £40,000), that exemption will also cease, adding another £355 a year to the bill.

Car manufacturers and many environmental lobbyists have said that the move is premature and may slow the move to zero-emissions motoring.

Scrappage schemes

There is no national, government-backed or subsidised scrappage scheme currently operating in the UK. There are some local schemes operated by local authorities and some schemes offered by car manufacturers but these all have limitations.

Local government scrappage schemes

  • London

    The mayor has announced a new scheme beginning in August 2023. This will only be available to Londoners who meet the criteria. The Transport for London website says the following: "Following the success of our last scrappage scheme, which saw the removal of more than 15,000 polluting vehicles from London's roads, our new scrappage scheme will support Londoners on certain low income or disability benefits, and eligible micro businesses (up to 10 employees), sole traders and charities with a registered address in London. Only eligible applicants with vehicles that do not meet the ULEZ emissions standard will qualify for our new scrappage scheme."

    Follow the link for more information on the 2023 London scrappage scheme.

  • Birmingham

    Birmingham operates a scheme for people on limited incomes who work within the city's Clean Air Zone. Applicants must earn less than £30,000 a year and work within the Clean Air Zone for at least 18 hours a week. They must have owned an emissions non-compliant vehicle since September 2018.

    Follow the following link for more information on the Birmingham scrappage scheme.

Manufacturer's scrappage schemes

At the time of writing, we are unable to find any active UK scrappage schemes offered by car manufacturers. In recent years, schemes have been operated by Vauxhall, MG, Mazda, Audi, BMW, Mercedes, Kia, Hyundai, Misubishi and Skoda but these have now expired.

With so many separate, individually operated scrappage incentives, it is not possible to predict when offers will become available again, so it is always worth enquiring with car dealers about current opportunities when considering an electric vehicle purchase.

Summary

There are a few benefits available to drivers of electric vehicles, such as concessions regarding controlled emission zones, eligibility to display green number plates and use of certain limited-access road lanes in some areas. However, assistance with actually making the transition from fossil fuels to electric vehicles is depressingly limited. Many of the schemes previously available to help with the cost of purchasing vehicles and charging equipment have been discontinued and the prices of electric vehicles place them beyond the means of many working people.

If the government is to honour its pledge that all new cars and vans will be required to be fully zero emission at the tailpipe by 2035, it seems that it will have to overcome its reluctance to invest money in helping drivers to make the change.

Information believed correct as of the last update on 11/08/2023

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