Electric car subsidies worth £1,500 DROP in huge change for motorists

The government is withdrawing subsidies for electric cars that offered rebates of up to £1,500 and giving the money to taxis and vans instead, in a move criticized by car experts.

Subsidies for electric cars are scrapped according to shock government update

Newbie Grants electric car worth up to £1,500 were scrapped as of today, the transport department (DfT) announced.

Drivers could previously claim up to £1,500 for the cost of a plug-in car costing less than £32,000.

The auto industry and car groups criticized the decision.

The AA warned that many motorists forced to wait for a new electric car due to global supply constraints would be the losers.

The DfT said the “success” of the Plug-in car subsidy means that the government will now “refocus” funding.

The government now wants to encourage users of vehicles like taxis and vans to go electric.

Electric car sales are booming – but now the government has withdrawn funds for new buyers


Nathan Stirk/Getty Images)

Sales of all-electric new cars have risen from less than 1,000 in 2011 to nearly 100,000 in the first five months of 2022.

The grant was worth £2,500 when it first launched, but was reduced to £1,500 in March 2021 before being dropped for cars from today.

Existing grant applications “will continue to be honoured”, the DfT said.

Transport Minister Trudy Harrison said: “The Government is continuing to invest record amounts in the transition to electric vehicles (electric vehicles), with £2.5billion injected since 2020, and has set dates most ambitious phase-out plans for new diesel and gasoline sales of any major country.

“But government funding must always be invested where it has the greatest impact if this success story is to continue.

“Having successfully launched the electric car market, we now want to use Plug-in Grants to match that success on other types of vehicles, from taxis to delivery vans and everything in between, to help make the switch to cheaper and easier zero-emission travel.”

Sales of new petrol and diesel cars and vans in the UK will be banned from 2030.

AA chairman Edmund King said the subsidies were “essential for many drivers switching from petrol to diesel”.

He continued: “The plug was pulled at the wrong time on this significant subsidy before many users, still waiting for delayed EVs due to global shortages, made the switch.

“Drivers, and indeed many fleets, who are considering switching to electric vehicles, can now back off until they find more money.

“With record prices at the pump and already strained household budgets, removing the last incentive to go electric could stall this important transition to electrification.”

The news falls like gasoline prices reached a new high today.

Government figures show the average liter of petrol now costs 182.5p, down from last week’s record high of 174.9p.

Diesel costs are also at a record high of 190.4p, up from 184.9p last week.

Earlier this year, The Mirror sent an intrepid reporter to try the world’s first electric airplane.

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