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Changes To Electric Vehicle Plug-In Car Grant Announced By Government

19th March 2021

The government yesterday announced immediate changes to the criteria of the Plug-In Car Grant (PICG) for electric vehicles, designed to help greater numbers of people switch to an electric vehicle and allow the funding for the scheme to go further, by targeting a greater range of less expensive models now becoming available in the market.

The PICG scheme was renewed last year with £582 million of funding intended to last until 2022-2023. The announcement yesterday detailed that the aim is for this funding to be available to more drivers and last longer, with grants no longer available for higher-priced models which are typically bought by drivers who can afford to make the switch without a subsidy from taxpayers.

Previously, from March 2020, a £3000 grant was available for new electric vehicles with a manufacturers recommended retail price under £50,000, but the grant is now reduced to £2500 and is only available for new vehicles with a RRP of under £35,000.

Changes To Electric Vehicle Plug In Car Grant Announced By Government

The Office for Zero Emission Vehicles has published guidance on the definition of the RRP, detailed below.

The price includes:

  • VAT, including VAT reclaimable by a business
  • Vehicle manufacturer or dealer’s mandatory extras, including delivery charges or administration fees
  • The battery cost (including where the battery is leased)
  • Any non-standard option fitted by the manufacturer or dealer affecting the capacity of the battery, drivetrain configuration or maximum net power

and excludes:

  • Any non-standard option fitted by the manufacturer or dealer which does not affect the capacity of the battery, drivetrain configuration or maximum net power
  • Modifications for emergency services vehicles
  • Modifications for disabled users
  • Warranty/insurance and service packages etc
  • First registration fee and cost of first licence
  • Discounts (including rebates)

The guidance also states that where a vehicle model has a price range which straddles the £35k cap, only those variants/trim levels priced below the cap will be eligible for the grant.

From the customer’s point of view, the PICG is deducted from the vehicle’s price at the point of sale by the dealership.

For dealers using the DragonDMS dealer management system, adding a Plug-In Car Grant to a deal is easily taken care of as you can show the grant amount as a deduction on the car sales invoice to the customer, and also record the receipt of the grant against the vehicle record.



If you’re interested in Dragon2000’s dealer management system, car dealer websites or mobile apps, then please contact us at sales@dragon2000.co.uk or call 01327 222333.

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