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<p>We signalled our intention to manage an exit from the plug-in car grant in our
Road to Zero Strategy, published in 2018, and transition to support through other
measures. As the market has developed, we have changed our criteria to focus the plug-in
car grant on vehicles, which have the greatest impact on reducing carbon emissions.</p><p>
</p><p>In March 2020, the Government extended the plug-in vehicle grant schemes for
another three years to 2022/23. For cars, the grant rate is being reduced from £3,000
to £2,500 per car, allowing the funding to last longer and make it available to 20%
more drivers, with the cap reducing from £50,000 to £35,000. The increasing choice
of new vehicles, growing demand from customers and the rapidly rising number of chargepoints,
means we are today, re-focusing our vehicle grants on the more affordable zero emission
vehicles – where most consumers will be looking and where taxpayers’ money will make
more of a difference.</p><p> </p><p>Although the market is at an early stage, demand
for zero emission vans increased substantially in 2020, with increased interest from
commercial fleets. We expect this trend to continue as more models are brought to
market and supply increases. Since the grant scheme was launched in 2012, it has since
supported over 15,000 electric vans and HGVs across the UK. There are now more than
20 models eligible for the grant and this continues to increase.</p><p> </p><p>The
Government has pledged a £2.8 billion package of measures to support industry and
consumers to make the switch to cleaner vehicles including £1.3 billion for charging
infrastructure, £582 million for vehicle grants and up to £1 billion to help secure
the transformation of the automotive sector by developing and embedding the next generation
of automotive technologies in the UK. We keep our policies and grant rates under review
and will monitor the market closely, to ensure the grant remains an effective incentive
and good value for money for the taxpayer.</p>
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