Your guide to understanding the government Plug-In Car Grant

There seems to be a lot of conversation across the nation about how we can work towards being more eco-friendly. For example, the government’s plan to stop the sale of petrol and diesel cars by 2040. The government’s Plug-In Car Grant (PICG) was encouraging people to switch over to electric and hybrid vehicles. There were incentives to switching but reforms are coming into place this month. It can be hard to know exactly what that means - so, we’ve put together a guide to help you understand these changes and if they’re the right fit for you.

The history of the the PICG

The PICG was first introduced in 2011 and helped to establish the low-emission vehicle market in the UK. The grant was made up of three categories: category one focused on reimbursing people for fully electric vehicles - while categories two and three allowed motorists to claim back money towards hybrid vehicle purchases.

Categories two and three have been cancelled

The new changes that been made to the PICG mean that motorists cannot claim back money for hybrid vehicle purchases. (Hybrids were previously available to claim back up to £2,500.) 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.

There has been a reduction in category one funding

Electric vehicles eligible under category one are now the only types of vehicles that motorists can claim back on under the PICG. Under the old criteria, people could claim back up to £4,500 on category one motors that they’ve purchased. There has been a reduction of £1,000 for every new grant given - and some people have criticised the new rules. However, the new plans still allow drivers to claim back up to £3,500 on fully electric vehicles.

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