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OZEV announces extension for plug-in car grant delivery period
Helping hand for electric car buyers will last a little longer to factor in supply issues and delivery delays.
Words by: Dan Trent
Additional words by: Andrew Woodhouse
Last updated on 20 November 2023 | 0 min read
In early October, the Office for Zero Emission Vehicles (OZEV) announced they would temporarily extend the plug-in car grant delivery period from 12 to 18 months. The extension announced by OZEV applies to vehicle orders placed between June 14, 2021 and March 31, 2023 - which means car buyers facing delays due to supply chain issues can still make a claim and benefit from the grant.
This comes after the plug-in car grant was gradually scaled back (from £5,000 to £2,500 and then £1,500), before being scrapped entirely in June 2022. “The scheme has succeeded in creating a mature market for ultra-low emission vehicles, helping to increase the sales of fully electric cars from less than 1,000 in 2011 to almost 100,000 in the first five months of 2022 alone,” the Department for Transport's June statement said. “Successive reductions in the size of the grant, and the number of models it covers, have had little effect on rapidly accelerating sales or on the continuously growing range of models being manufactured.” Once the extension period ends, money earmarked for the grant scheme will now be redirected to other areas where electrification needs additional support, such as taxis, vans, motorbikes and in the creation of the charging infrastructure to support the growing numbers of battery electric vehicles (BEVs) on British roads.
This comes after the plug-in car grant was gradually scaled back (from £5,000 to £2,500 and then £1,500), before being scrapped entirely in June 2022. “The scheme has succeeded in creating a mature market for ultra-low emission vehicles, helping to increase the sales of fully electric cars from less than 1,000 in 2011 to almost 100,000 in the first five months of 2022 alone,” the Department for Transport's June statement said. “Successive reductions in the size of the grant, and the number of models it covers, have had little effect on rapidly accelerating sales or on the continuously growing range of models being manufactured.” Once the extension period ends, money earmarked for the grant scheme will now be redirected to other areas where electrification needs additional support, such as taxis, vans, motorbikes and in the creation of the charging infrastructure to support the growing numbers of battery electric vehicles (BEVs) on British roads.
While this looks like bad news for private consumers the reduced value of the grant and limited number of smaller electric cars that qualified makes it perhaps less of an impact than it first seems. The combination of increased demand and reduced supply due to ongoing component shortages has also seen some manufacturers restrict ranges to more profitable, higher spec models, Skoda for instance temporarily halting sales of the cheaper 60 version of the Enyaq iV and currently only offering the longer-range 80 like the one we’re running on long-term test .
None of this helps with affordability or accessibility for drivers looking at ever more expensive petrol and diesel and wanting to make the switch, given the potentially cheaper running costs of an electric car. Other incentives remain, though, including cheaper VED and much reduced Benefit In Kind for company drivers while a salary sacrifice scheme can help make an electric car more cost effective if your employer offers it. While the premium models attract a lot of attention there are more accessible electric cars available as well, the MG range scooping various awards and rave reviews from owners in our recent New Car Awards while new entrants like the Ora Funky Cat are bringing the cost of entry down. Or, of course, you could consider a used electric car, more and more of which are now available on Auto Trader. However you choose to do it we’re here to help!
None of this helps with affordability or accessibility for drivers looking at ever more expensive petrol and diesel and wanting to make the switch, given the potentially cheaper running costs of an electric car. Other incentives remain, though, including cheaper VED and much reduced Benefit In Kind for company drivers while a salary sacrifice scheme can help make an electric car more cost effective if your employer offers it. While the premium models attract a lot of attention there are more accessible electric cars available as well, the MG range scooping various awards and rave reviews from owners in our recent New Car Awards while new entrants like the Ora Funky Cat are bringing the cost of entry down. Or, of course, you could consider a used electric car, more and more of which are now available on Auto Trader. However you choose to do it we’re here to help!
Home charger grants for flat owners remains an option
If you live in a flat (either renting or owning) or rent a property then you can apply for a £350 contribution towards the cost of a charging point or 75 per cent off the cost of the charge point, whichever is the lowest amount. You’ll need access to off-road parking to apply, details are available here.
Landlords can apply for this grant for up to 200 residential properties a year, and 100 commercial properties a year. They can also apply for up to £30,000 - or 75 per cent off - the cost of infrastructure and building work to fit multiple charging points, whichever is lower.
Landlords can apply for this grant for up to 200 residential properties a year, and 100 commercial properties a year. They can also apply for up to £30,000 - or 75 per cent off - the cost of infrastructure and building work to fit multiple charging points, whichever is lower.