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Government Scraps Electric Car Grant

Posted in On 14/06/2022
Government Scraps Electric Car Grant

The UK government has unveiled today that the remaining £1,500 electric vehicle grant is no more. The latest move to scrap the grant makes the United Kingdom the only country out of all European countries to have zero financial incentive on electric vehicles.

The government has said the reasoning behind this decision was to focus its efforts on other areas such as the infrastructure around charging vehicles.

The decision to axe the grant has caused a huge backlash among motorists with the Chief Executive of SMMT, who represents car manufacturers, saying the decision made sends the wrong message. They have scrapped an important grant to help the UK towards their ambitious 2030 target to ban the sale of new diesel and petrol cars.

The scheme has been closed for new orders effective from 14 June.

The government has claimed the remaining budget will focus a shift toward motorbikes, vans, trucks, and taxis as well as improving and expanding the UK’s infrastructure.

Grant History

Back in 2011, the original grant was £5,000 for a new electric car. Since then, it has been reduced to £2,500 and then to £1,500 in December 2021.

In 2021, the grant helped sales of EVs grow by a whopping 70%. According to Zap-Map, there are now over 480,000 battery electric vehicles (BEV’s) and a further 390,000 plug-in hybrids.

Are Electric Cars Worth It?

Ultimately, the reasoning behind the grant in the first place was to encourage the UK to drive fully electric vehicles. Since its launch in 2011, electric vehicles have significantly dropped in price with battery production costs dropping by 89 percent in the last decade.

This is also helped with the huge choice of electric vehicles now available to buy. There are now 24 electric vehicles available to buy in the UK for less than £32,000.

With the increasing rise at the fuel pumps, an EV will still cost much less to run than its fossil-fuelled counterparts.

At the time of writing, a 55-litre petrol car costs almost £100 to fill. Recharging an electric car to cover similar distances costs around £37.

There are also other notable benefits of electric vehicles. Most are exempt from road tax and congestion charges.

Depending on the type of journey you make, daily mileage, where you drive, and when you charge your EV will have an impact on the day-to-day running, however, the benefits are still there when taking the bigger picture into account.

Electric Car Leasing

At Octane Vehicle Leasing, we offer any model from all major UK manufacturers, including a wide range of electric vehicles and plug-in hybrids. With a lease, you won’t have to worry about the long-term disadvantages of battery-powered vehicles as the vehicle you lease is simply handed back after two to four years.

Have a look at all our electric leasing offers available! Get in touch with our team about getting behind the wheel of a brand-new electric car.

Sources:

https://www.gov.uk/government/news/plug-in-grant-for-cars-to-end-as-focus-moves-to-improving-electric-vehicle-charging

https://www.smmt.co.uk/2022/06/smmt-response-to-end-of-plug-in-car-grant/

https://www.zap-map.com/ev-market-statistics/