Government announces reduction in Plug-In-Car Grant

  • Government reduces grant rate for Category 1 vehicles from £4,500 to £3,500
  • Category 2 and Category 3 vehicles will no longer be eligible for the Plug-In-Car Grant
  • The REA urges the Government to consider alternative incentive and grant schemes to ensure continued uptake

The Government have announced their plans to change the current structure of their Plug-In-Car Grant in line with the increased uptake of electric vehicles.

The new structure will see the grant rate for Category 1 vehicles reduced from £4,500 to £3,500 with Category 2 and 3 vehicles no longer eligible for the grant.

Daniel Brown, Policy Manager at the REA said:

“Electric Vehicles are quickly coming down in cost and they are significantly cheaper to run than petrol or diesel vehicles, but the market is not yet fully mature and the removal of grants needs to be done in a structured, long term way with support moving towards tax-based mechanisms.

“The Government is right to now focus resources on Grants for those vehicles with the highest zero emission range, such as battery electric vehicles as these will reduce emissions the most. Accelerated EV uptake is also critical for building a world class EV charging network in the UK as infrastructure investment is likely to match rates of EV deployment.

“The Chancellor can show he’s behind continued EV deployment by reducing the Company Car Tax Benefit in Kind rate to 2% for Battery Electric Vehicles in the next Budget, rather than waiting until 2020. This would bring us into line with similar moves in countries like Germany, the Netherlands and Ireland.”


For more information or to request an interview, please contact:

Hayley Allen
External Affairs Officer
+44 (0)20 7981 0862
[email protected]

Notes to editors
Find the full Governmental announcement here:

About the Renewable Energy Association (REA)

The REA is the UK’s largest trade association for renewable energy and clean technologies with around 550 members operating across heat, transport, and power. The REA is a not-for-profit organisation that represents renewable energy and clean technology companies operating in over fourteen sectors, ranging from biogas and renewable fuels to solar and electric vehicles. Membership ranges from major multinationals to sole traders.

The REA’s EV sector group is comprised of around 50 members delivering the critical infrastructure needed to deliver the transition to a zero emission car and van future. The REA additionally serves as secretariat to the All-Party Parliamentary Group on Electric and Automated Vehicles.

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