3 things to know about the plug-in car grant

We’re all working towards being more eco friendly by doing what we can where we can. One of the main things we can do is look at switching from a petrol or diesel engine. There are plenty of alternatives around such as vehicles with hybrid or electric engines. These types of engines are growing in popularity and the government had a Plug-In Car Grant (PICG) to help those wishing to purchase one. Some changes to those grants have been introduced this month and we’ve explained them below for you.

1. The PICG has well established the presence of the electric and hybrid market

The PICG was first introduced in 2011 and was created as a way to help the low-emission vehicle market. There were three categories when it launched - category one allowed motorists to claim back a hefty amount on fully electric cars. And categories two and three allowed motorists to claim back some money on hybrid vehicles.

2. Categories two and three have been scrapped

Under the new plans you can no longer claim up to £2,500 back on hybrid vehicles - and you won’t be able to claim back for hybrid vehicles at all now. It’s thought that 900 grants at the previous more generous levels were claimed each day since the changes were announced, compared with 140 during the first six months of 2018.

3. Category one funding has been reduced

Category one vehicles are now the only types of motors that can be claimed for under the PICG. Only fully electric vehicles can be claimed under this new plan and it’s caused some controversy. Previously you could claim up to £4,500 back when you bought an electric vehicle. Under the new plans you’ll be able to claim for them still at a reduced rate of £3,500.

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