What are the changes to the plug-in car grant?

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From 1 March 2016, plug-in car grant levels are being reduced.

So if you’ve been mulling over buying an ultra low emission vehicle (ULEV), you need to get your skates on and make a decision this weekend if you want the current higher amount.

What is the plug-in car grant?

The plug-in car grant is designed to encourage people to buy ULEVs and you can get a grant towards the cost of any ULEV, provided it meets certain conditions.

At present, the grant provides 35% of the value of the car up to a maximum of £5,000 (and 20% of the value of a van up to a maximum of £8,000).

The new grant levels will be based on the environmental performance of the vehicle. ULEVs will be placed into one of three categories on the basis of their CO2 emissions and zero emission range.

The categories are:

• Category 1 – CO₂ emissions of less than 50g/km and a zero emission range of at least 70 miles


• Category 2 – CO₂ emissions of less than 50g/km and a zero emission range between 10 and 69 miles


• Category 3 – CO₂ emissions of 50 to 75g/km and a zero emission range of at least 20 miles.

From 1 March 2016, the following rates will apply:

• £4,500 for eligible category 1 vehicles


• £2,500 for eligible category 2 vehicles


• £2,500 for eligible category 3 vehicles.

Vehicles that cost £60,000 and above will no longer be eligible for the grant.

If you have already ordered a vehicle but are taking delivery after 1 March, you will still get a £5,000 grant as long as the dealer has correctly submitted the claim.

The car must be delivered within 9 months of when the claim was submitted.

What are the changes to the plug-in car grant?