The Plug-in Grant is a crucial component in the affordability of BEVs. The Plug-in Grant directly impacts the lease cost of a vehicle for both an individual or a company. It is now limited to commercial vehicles.
You can get a discount on the price of brand new low-emission vehicles through a grant from the government.
You do not need to do anything if you want to buy a vehicle the value of the grant will be included in the vehicle’s price.
On 4th October 2022, The Office for Zero Emission Vehicles (OZEV) notified you that the delivery period for Plug-in Vehicle Grant orders would be extended from 12 to 18 months for orders placed between 14th June 2021 and 31st March 2023.
This extension gave targeted support to industry as it continues to recover from supply and production issues caused by Covid-19 and the conflict in Ukraine.
When this was announced, OZEV made clear that a decision on the length of the delivery period post 31st March 2023 would be made around that date, and that the length of the delivery period was subject to change.
On that basis, we can confirm that we will be reverting to the previous delivery period of 12 months – for orders placed on or after 1st April 2023. This remains an extension from the original delivery period of 9 months.
We remain mindful of supply and economic pressures, and will keep the 12-month delivery period under review.
BVRLA examples of what this means:
- Closed grants are NOT reopened, there are NO changes in the grant system - it is just the delivery windows that have been altered
- If a van is ordered on 31 March 2023 it will have 18 months to be delivered and still receive the grant - e.g. before 1 October 2024
- If a van is ordered on 1 April 2023 it will have 12 months to be delivered for it to still receive the grant - e.g. before 1 April 2024
Government has recognised the disruption no notice changes will create. OZEV has communicated the following justification to the BVRLA. This can be used by BVRLA members when communicating with your customers.
“Government has a responsibility to manage the grant budget and to deliver value for money for taxpayers and, as signalled to industry following the March 2021 grant changes, has therefore been unable to provide notice ahead of the grant changes. When we have given the market prior notice of changes to the Plug-in Grants in the past, this has caused order spikes which are unaffordable within allocated budgets.
Government recognises that when immediate changes are made to Grants it will mean funders and leasing companies are often not able to honour quotes given to customers for orders if the full ordering process is not complete when the grant change happens. Whilst OZEV appreciates the disappointment this could cause for affected drivers, in the context of our responsibility to protect public funds it is unfortunately unavoidable.”
- £2,500 for up to 2.5t
- £5,000 for between 2.5t and 4.25t
- capped at 1,000 grants per firm
- 4.25t to 12t, £16,000
- Limit of 10 per organisation and 250 per year before dropping to £5,000
- Limit of 5 per organisation and 100 per year before dropping to £16,000