Government shuts the door on EV grants

By 3 Min Read

The government has slammed the door on proposals to offer cash incentives to buyers of EVs.

The proposal was rejected in the Government response to the House of Lords Environment and Climate Change Committee’s Electric Vehicles inquiry

It had been proposed that the Government “explore targeted grants” to incentivise the purchase of EVs to stimulate the market, support the move to price parity and help counteract the trend towards SUVs which have broader environmental costs.

“These incentives should be accompanied by an exit strategy for when and how they should be tapered; this should only be as price parity is reached.”

The Government kicked this into touch arguing that grants have been in place for over a decade to help reduce the up-front purchase price of new EVs.

“All Government grants are kept under review to ensure the best value for money for the taxpayer.

“The Plug-in Car Grant was closed to new orders on 14 June 2022, having injected £1.5 billion in taxpayer funding to support the growth of the early electric car market.

“In June 2022, the Government published a public evaluation report, which highlighted that the Plug-in Car Grant was vital in building the early market for electric vehicles.

“It then had less of an effect on demand than other existing price incentives, such as company car tax.

The Chair of the inquiry, Baroness Parminter, said: “Surface transport is the UK’s highest emitting sector for CO2, with passenger cars responsible for over half those emissions.

“The evidence we received shows the Government must do more – and quickly – to get people to adopt EVs.

“If it fails to heed our recommendations the UK won’t reap the significant benefits of better air quality and will lag in the slow lane for tackling climate change.”

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