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Ministers warn incentives must offer “value for money for the taxpayer”, and “we think there’s a better way of doing it”
The future of the UK Plug in Car Grant (PiCG) – which sees Government subsidies knock £3,500 off the price of a new electric car – looks increasingly shaky, following statements from two Government ministers casting doubt on the scheme, which is due to end in March 2020 by default.This is despite the ban on sales of new petrol and diesel vehicles being brought forward from 2040 to 2035, and the expansion of the ban to take in hybrids and plug-in hybrids (PHEVs).
• What is the plug-in car grant
The Department for Transport’s Future of Transport Minister, George Freeman, told Auto Express the grant was only ever intended “to kick-start the early market for electric vehicles, and funded over 200,000 electric vehicles including pure electrics and plug-in hybrids.” Freeman highlighted figures from the Society of Motor Manufacturers and Traders (SMMT) that showed a 204 per cent increase in EV sales in January, compared to the same month last year.
Freeman added: “But as prices of these cars come down, it is right that the Government ensures value for money for the taxpayer while focusing our support on zero emission models.”
The increasing popularity of electric cars bringing about a reduction in pricing is, however, an uncertain future trend. Car makers struggle to turn a profit on electric cars, with Mike Hawes, chief executive of the SMMT, describing EVs as “generally loss leaders” for firms.
Further uncertainty over the future of the PiCG was sewn by secretary of state for justice, Robert Buckland, who told a Question Time audience that instead of the PiCG: “We think there’s a better way of doing it…By scaling up the infrastructure it means that more people will start to buy electric cars, and with that scale of demand then the price starts to come down. I think that’s the way we’re going to do this.” Buckland added that he couldn’t “judge what’s going to happen in the budget”, however.
The Budget, which is to be delivered on March 11, is under the control of the Chancellor of the Exchequer and the Treasury, with a spokesperson for the latter telling The Telegraph that “We have always said we would phase out the subsidies gradually, but there are other ways we can help people to go electric.”
The paper’s Government source insisted that “consumer incentives will continue to play a role beyond 2020” and that “we are not going to end up in a cliff-edge situation where we suddenly stop subsidising electric cars”.
But with rumours continuing to circulate that the PiCG will end in March, and no firm denial from Government this this will be the case, it looks increasingly likely that the only incentives to remain will be a £500 discount on home EV chargers, exemption from VED road tax, and reduced taxation for company car drivers, who will escape all Benefit-in-Kind charges this financial year if they choose an electric car.
Sales of new plug-in hybrids to be banned: confirmation
When the Government announced its consultation into moving the 2040 ban forward to 2035, it said the ban would be “including hybrids for the first time” – though no mention was made of plug-in hybrids (PHEVs).Future of Transport Minister George Freeman confirmed to Auto Express, however, that while PHEVs “can deliver significant emissions savings and will continue to be important in helping motorists make the switch to a cleaner and different way of powering their vehicles”, the Department for Transport considers that “they are not always driven in zero emission mode and would therefore not be permitted for sale after the phase out date.”
• Best electric cars
Government invests heavily in charging infrastructure
Freeman highlighted that charging infrastructure played a huge role in the Government’s £1.5billion Road to Zero strategy that aims to bring about zero emission road transport.“We want to have the best charging infrastructure networks in the world for electric vehicles, and for chargepoints to be accessible, affordable and secure. We now have over 24,000 publicly accessible charge-points across the UK, and more than 2,500 are rapid devices, one of the largest networks in Europe.”
The Minister highlighted a £400million investment, half of which came from private business, and half from Government coffers, that “will see thousands more electric vehicle chargepoints installed across the UK.”
Second-hand petrol and diesel cars unaffected by 2035 ban
Asked if any restrictions related to the sale of second-hand petrol, diesel and hybrid cars were being considered, Freeman was firm: “To be clear, this consultation is about the phase out of new sales of petrol and diesel cars and vans. It does not include used vehicles.”The only person who got all his work done by Friday was Robinson Crusoe.
Anything i post over three lines long please assume it is an article lol.
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After watching Question Time last night, it is clear that they are removing the £3500 Grant for electric vehicles and ‘apparently’ spending the money on the charging infrastructure instead.
This is tragic news for Scheme users, due to the pricing restrictions it would remove the BMW i3 and is probably the reason the Ioniq Electric has been taken off the Scheme.
Terrible news wmc the worst.
I caught some of question time and its clear the government have not got a glue. We do need infrastructure but only if we have the EV’s to use it.
As you know I am a big EV fan but I will be getting a diesel SUV this year and that is disappointing.
On another subject did you get my email yesterday?
The only person who got all his work done by Friday was Robinson Crusoe.
Anything i post over three lines long please assume it is an article lol.
Yes I saw Question Time too and despite Fiona Bruce asking twice, “why are you removing the grant when you’re trying to move people out of petrol and diesel cars?”, he just blustered on about a better charging infrastructure. Idiot. Expect APs to rise on non ICE vehicles from Q2.
@brydo, just double checked and no email: enquiries@whichmobilitycar.com
I’ve prepared for an electric car as my next Motability car & now this looks like all the preparation, getting permissions for EV charge point & solar panels, getting the electrics from the fusebox uprated, new smartmeter, etc., not to mention the time & money spent on getting test drives & viewing the electric models are all for nothing.
I have sent you an email using that link hopefully it will get to you ?
Quote “value for money for the taxpayer” and there’s me thinking its about cleaner air not money.
But then we know it’s always about money and how best to screw the motorist.
Julie there will still be EV options on the scheme, just not that many.
The only person who got all his work done by Friday was Robinson Crusoe.
Anything i post over three lines long please assume it is an article lol.It’s incredibly limited already, the i3 can’t take my wheelchair, nor can the e-208/corsa e/DS3, so that left me a choice between the Ioniq and the e-2008.
Now it’s just the e-2008, which is fine as I have piled away just enough money to cover it at its current price (bear in mind I was going for the Ioniq), & if that AP rises significantly I have no hope in raising the extra money in the time available (I can order from 18th April, so that’ll be 1st April to 18th April).
Might as well just get a cheap secondhand diesel & go idle it in Central London to inflict as much pollution as possible.
I would be very disappointed if the bmw i3 goes off the scheme, I was prepared to compromise on rear space. Love the look and the design.
Let’s just keep our fingers crossed they see sense before making a big mistake.
The only person who got all his work done by Friday was Robinson Crusoe.
Anything i post over three lines long please assume it is an article lol.Come 2035 the value of used petrol and diesel cars will increase as those people who will struggle to charge an electric vehicle such as people in flats etc will have to purchase an ice vehicle.
Either that or technology will need to move rapidly to overcome this.
Elliot by 2035 BEVs will be unrecognisable to today’s fair, contactless charging, solid state batteries charging in minutes to a range of 700-800 miles, autonomous vehicles, cars cheaper than ICE cars by a few thousand pounds, batteries that will last longer than the car, regen systems that will feed 20% of the charge back into the battery the list will go on and on.
The only person who got all his work done by Friday was Robinson Crusoe.
Anything i post over three lines long please assume it is an article lol.According to the experts in the 1980’s we would all be driving flying cars by now.
Call me sceptical but I’m not so sure all the problems will have been sorted in the next 15 years.
Nothing wrong with being sceptical Elliot.
The only person who got all his work done by Friday was Robinson Crusoe.
Anything i post over three lines long please assume it is an article lol.Elliot by 2035 BEVs will be unrecognisable to today’s fair, contactless charging, solid state batteries charging in minutes to a range of 700-800 miles, autonomous vehicles, cars cheaper than ICE cars by a few thousand pounds, batteries that will last longer than the car, regen systems that will feed 20% of the charge back into the battery the list will go on and on.
You only have to look at computer and mobile phone technology to see a good example. It was only a few years ago the diesel engines was the poor cousin, now look how advanced they have become I can forsee the EV going the same way.
Unfortunately I have suffered a brain injury and occasionally I get confused and often say the wrong thing.
Oscarmax we are in a magical time where we will all look back and say “remember when” BEVs are the future no doubt.
Remember when no one had a mobile phone, then they arrived and were as big as a brick and were ONLY a phone. No internet, no camera only a phone, and they were great.
Then we got a computer in work Multimate 4 was all that was on it, we had one computer between thirty staff, within five years we had no typists. That was a particularly sad day lol.
The same will be the case for BEVs soon they will be the answer to all our driving needs plus some, large or small they will all be available and they will be more than cars they will be computer/entertainment centres on wheels.
The only person who got all his work done by Friday was Robinson Crusoe.
Anything i post over three lines long please assume it is an article lol.
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