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Plug-in vehicle grants – new rates

17 December 2021

Following the Government announcement that plug-in car and van grant rates will be cut, we would like to highlight what the key changes are, and how this affects you as a buying customer.

Plug-in Car Grant

Previous rates:

  • 35% of purchase price, up to £2,500
  • Cars must cost less than £35,000. This is the recommended retail price (RRP) inclusive of VAT and delivery fees
  • These vehicles have CO2 emission of less than 50g/km and can travel at least 112km (70 miles) without any emissions at all

New rates:

  • 35% of purchase price, up to £1,500
  • Cars must cost less than £32,000. This is the recommended retail price (RRP), inclusive of VAT and delivery fees
  • These vehicles have no tailpipe CO2 emissions and can travel at least 112km (70 miles)

Plug-in Van Grant (N1/Light Commercial Vehicles)

Previous rates:

  • 35% of purchase price up to £3,000 for small vans < 2.5 tonnes gross vehicle weight (t GVW)
  • 35% of purchase price up to £6,000 for large vans 2.5-3.5t GVW

New rates:

  • 35% of purchase price up to £2,500 for small vans < 2.5 tonnes gross vehicle weight (t GVW)
  • 35% of purchase price up to £5,000 for large vans 2.5-3.5t GVW
  • There are no changes to grant rates for vehicles over 3.5 tonnes.

What does this mean for buying customers?


Any vehicle orders placed with dealers before 23:59 on 14 December, which had been logged by the supplying dealer on the OZEV portal will apply the grants at the old rates. If you had placed an order between 08th – 14th December, we would recommend you ask the dealer to confirm they have logged the order on the portal to secure the previous grant rate.

Any customers who have recently obtained prices for Electric Vehicles, however, have not yet awarded contracts or placed orders, will unfortunately be affected by the newly reduced grant rates. Should you believe you have tender activities we have supported you with that will be affected by this change, please contact us to seek clarification from suppliers and revised pricing where necessary.

For further information regarding these changes, please visit Government funding targeted at more affordable zero-emission vehicles as market charges ahead in shift towards an electric future – GOV.UK (www.gov.uk)