Question to the Department for Transport:

To ask the Secretary of State for Transport, for what reason his Department has taken the decision to reduce the plug-in car grants for electric vehicles; and if he will make a statement.

The Plug-in Car Grant was first introduced in 2011 to help to stimulate the early market for ultra-low emission vehicles. So far, it has supported the purchase of over 160,000 new cars. The market share of these vehicles is now 2-2.5% of new car sales and growing.

Increased uptake of the grant, whilst positive, brings higher costs to the taxpayer, and the changes to the grant reflect the Government’s commitment in the Road to Zero strategy to deliver a managed exit from grant funding over time. Their effect is to allow the grant to support the purchase of 35,000 more of the cleanest vehicles.

With plug-in hybrid models becoming popular among consumers the Government is focussing its attention on zero emission models. Plug-in hybrid vehicles are among the cleanest on the road, and can deliver significant savings compared to petrol/diesel cars. These vehicles will continue to receive support through lower car tax rates, grants for charging infrastructure and local incentives (such as free parking). The Government has also separately extended its support for electric vehicles with a new scheme to support e-cargo bikes.