The Government has recently announced that the Plug-in Taxi Grant (PITG) will be extended into Financial Year 2024/25, at a reduced rate of £6,000 per vehicle.
The PITG was introduced in 2017 to stimulate the early market for ZEV taxis. It has provided around £50 million to support the purchase of over 9,000 vehicles.
As of November 2023, over 54% (8,299) of actively licensed London taxis were ZEVs. The number of ZEV taxis licensed in London has increased by 24% since the first week of January 2023.
As the market matures, the Government must target incentives where they have the most impact and deliver the greatest value for money to the taxpayer. All plug-in vehicle grants remain under constant review.
The PITG remains available for orders to be placed at the current grant level of £7,500 per vehicle until the end of the current financial year.
The guidance on GOV.UK will be updated to reflect this announcement in due course.
