The Department for Transport (DfT) will reduce the grant for electric vehicle (EV) purchases from £3,000 to £2,500 and restrict it to purchases below £35,000.

The changes will come into effect from today.

The news comes after the UK government pledged £20m to support electric vehicle charging infrastructure in January.

The Society of Motor Manufacturers and Traders (SMMT) criticised the move, and said it went against the government’s zero emissions aims.

The DfT however said more expensive vehicles are generally bought by wealthy drivers, who can afford to make the switch-over without subsidies.

The EV grant scheme was first introduced in 2011 to incentivise the switch to low-emission vehicles.

The grant was initially worth up to £5,000 but it has gradually been limited and reduced, most recently in March 2020.

The DfT said £1.3 billion has been spent on EV vehicle grants since 2011.

In addition, the DfT highlighted that the government is investing more than £15 billion of new money into car alternatives.

This includes £3 billion for buses, £2 billion for cycling, over £4 billion for local transport in cities, and £5 billion for enhancements to the rail network according to the DfT.

“We want as many people as possible to be able to make the switch to electric vehicles as we look to reduce our carbon emissions, strive towards our net-zero ambitions and level up right across the UK,” said transport minister Rachel Maclean.

“The increasing choice of new vehicles, growing demand from customers and rapidly rising number of chargepoints mean that, while the level of funding remains as high as ever, given soaring demand, we are refocusing our vehicle grants on the more affordable zero emission vehicles – where most consumers will be looking and where taxpayers’ money will make more of a difference.”

She said: “We will continue to review the grant as the market grows.”

Mike Hawes, SMMT chief executive, said: “The decision to slash the Plug-in Car Grant and Van and Truck Grant is the wrong move at the wrong time."

“New battery electric technology is more expensive than conventional engines and incentives are essential in making these vehicles affordable to the customer.”

“Cutting the grant and eligibility moves the UK even further behind other markets, markets which are increasing their support, making it yet more difficult for the UK to get sufficient supply.”

He added: “This sends the wrong message to the consumer, especially private customers, and to an industry challenged to meet the Government’s ambition to be a world leader in the transition to zero emission mobility.”

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