The government has canceled a £ 1,500 car grant (PiCG) with immediate effect – ending an electric car incentive scheme dating back to 2011.
The government hailed the “success of the UK electric car revolution” as the reason for the decision, saying it had helped boost clean electric car sales from 1,000 in 2011 to nearly 100,000 in the first five months of 2022 alone. PiCG has applied for more than 500,000 EVs since its inception, with a total contribution of more than £ 1.4 billion.
Repeated cuts in the amount of money allocated as part of PiCG have sparked speculation about its disintegration for several years, and the government’s earlier commitment to funding by fiscal 2022/2023 suggested that would be when it would end.
Plug-in Car Grant: what an ax means to car buyers and manufacturers
Confirmation of its cancellation comes just six months after the amount was reduced from a maximum of £ 2,500 to £ 1,500 and the maximum price of eligible vehicles was reduced from £ 35,000- £ 32,000 – leaving only the most affordable EVs on the market. conditions for PiCG. The government says the number of electric cars available below that price point is now 24, up from 15 last year as manufacturers introduced cheaper entry-level electric cars.
The government said: “The government has always been clear that the car grant is temporary and has previously confirmed funding until 2022-23. The consistent reduction in the amount of grants and the number of models it covers have had little effect on rapidly accelerating sales or a constantly growing range of models that are produced.
Therefore, the government is now redirecting funding to the main barriers to the transition to EV, including public charging and support for the purchase of other road vehicles, where the transition to electric requires further development. “
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