Government extends Plug-In Car Grant until March 2023

The Government has announced an 18-month extension to its Plug-in Car Grant  (PiCG) for EV owners as a result of supply chain issues currently dogging the car building industry.

The scheme was controversially scrapped in June with ministers saying they instead wanted to focus on the ‘main barriers in the EV transition’, namely public charging.

Now, however, the Office for Zero Emission Vehicles (OZEV) has announced an extension which takes into account record waiting times for new vehicles.

The grant allows drivers to claim up to £1,500 towards the cost of a plug-in car costing less than £32,000.

Despite Government officials saying it had ‘little effect’ when they cancelled the policy, it will now be applied to car orders placed between June 14, 2021 and March 31, 2023.

A spokesman for the Department for Transport, which initially scrapped the scheme, today said: “We have temporarily extended the Plug-in Vehicle Grant delivery period in recognition of the continuing delays in manufacturing supply chains, due to ongoing semiconductor shortages and the conflict in Ukraine.

“The temporary 18-month extension covers all Plug-in Vehicle Grants logged on the system between 14 June 2021 and 31 March 2023. We will continue to work with industry and monitor issues impacting the supply chain issues.”

The decision to scrap the Plug-in Car grant in the first place was met with strong criticism from those working within the automotive industry.

AA president Edmund King said the grants were “essential for many drivers making the switch from petrol and diesel”.

Meanwhile, the Society of Motor Manufacturers and Traders said the decision to remove the grant “sent the wrong message”.

The latest news has been welcomed by industry leaders with the British Vehicle Rental Association (BVRLA) among those to praise the move.

Toby Poston, director of corporate affairs at the BVRLA, said: “This is great news for a fleet industry that is still suffering from massive lead times on some of the most popular battery electric vehicles.

“We greatly appreciate the input from members on this issue and thank OZEV for taking decisive action to support fleet decarbonisation.”