Why The New Changes To The Plug-In Grant Make Sense

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new changes to governments plug-in grant

The UK government has recently announced changes to the plug-in grant, applied to low-emission vehicles. Previously, electric car buyers could get up to £3,000 off their new EV (electric vehicle) worth up to £50,000 – but cuts have been made now that more and more people are considering switching to electric cars.


Plug-in car grant: key changes

  • Maximum grant reduced from £3,000 to £2,500
  • Grant applicable on cars worth up to £35,000, previously available for up to £50,000

The change of goalposts has come under a bit of criticism from environmental campaigners and transport officials – but we don’t think it’s all doom and gloom. There is some value to be taken from the changes for the majority of UK drivers, who will still be able to get discount off a variety of well-regarded electric cars.

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What is the plug-in grant?


The plug-in grant is a discount administered by the Office for Low Emission Vehicles (OLEV) that is designed to increase the uptake of electric vehicles among UK drivers.

The grant applies a discount of 35%, up to a maximum of £2,500, to eligible electric cars (in this case, EVs worth up to £35,000).

Motorcycles and mopeds may also be eligible for discounts of up to £1,500 while van drivers can get up to £8,000 off electric vans.

You don’t need to do anything if you are looking at driving an eligible car. Your dealer should automatically apply the discount, but it is always worth mentioning it to them while arranging your purchase just to make sure that you do benefit from the grant.


Does the plug-in grant apply to leased vehicles?


The good news is that the plug-in car grant does also apply to lease cars.

If you are planning to lease an eligible EV, your dealer will go through the process on your behalf and the grant will reduce your monthly payments. Make sure to mention the grant when initially arranging your lease to ensure the discount is processed and applied to your deal.

peugeot 208 eligible for plug-in grant

Which electric cars are eligible for the plug-in grant?


There is still a huge range of great electric cars eligible for the plug-in grant. From the sporty Vauxhall Corsa-e to the incredibly-efficient Nissan Leaf, and everything in between, you will no doubt find the perfect EV for you among the approved cars.

A full list of eligible vehicles can be found on the official gov.uk page.

At Moneyshake we compare lease deals for every single eligible electric car and bring you the best price available on the market. All from the top UK leasing providers. In order to get the discount off your electric car, make sure you ask one of our friendly leasing providers who will apply for the grant on your behalf and apply the discount to your monthly total lease cost.


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So why do the new changes to the plug-in grant make sense?


The whole point of the plug-in grant is to encourage more UK drivers to make the switch to electric vehicles. So the more people they can get making that switch, the better.

The point of cutting the grant down to £2,500 is simple. Give a smaller amount to more people, as opposed to giving larger amounts to less people.

So the aim is to prolong the scheme and increase the number of drivers that can benefit from the grants. So while it may seem like an easy, cost-cutting exercise from the government, the idea may actually get more people driving EVs.

skoda enyaq available with plug-in grant

Reducing the maximum value of eligible electric cars is another way of making the grants more accessible to more people.

With more and more electric cars being priced under £35,000, the latest cuts will make the grants stretch further while still allowing EV drivers to access a range of models. Even the more spacious family cars such as the MG ZS EV and the Hyundai Kona fall under the £35,000 mark.

So reducing the value of eligible cars down to £35,000 means that those hesitant about making the switch to electric due to costs, are still equally as incentivised to do so.

It may be some time before we can really understand the effect these changes will have on the EV landscape – but we’re hopeful that they will make a positive difference in the UK’s aim to produce net zero emissions by 2050.

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