The government has tightened the criteria for its new Electric Car Grant so that fewer cars are eligible for discounts just because one variant is priced under the £37,000 threshold.
The ECG, launched last month, is available to electric cars priced at £37,000 or under – with discounts of either £1500 or £3750 available. However, the eligibility for each model was determined by the cheapest version of each powertrain variant, meaning only one version needed to be priced under that threshold for more expensive trim levels to qualify for the grant.
But now Autocar can reveal that there will be a new upper threshold of £42,000 for pricier variants of cars that come in at under £37,000.
Previously, for example, all front-driven versions of the Nissan Ariya qualified for the £1500 grant – following the recent addition of a new sub-£37,000 entry variant – up to the £44,500 Evolve trim, which uses the same drivetrain.
The imposition of a new £42,000 threshold means that fewer versions of the front-driven Ariya will be eligible for the grant.
The change will be effective from midnight tonight (00:01 on 29 August) and the government will publish a new list of eligible vehicles.
In a statement sent to Autocar, the Department for Transport said: “The Electric Car Grant is putting money back in people’s pockets whilst also providing a vital boost for industry. The maximum price limit ensures only eligible cars priced at the lower end of the market can qualify for the discounts, ensuring government support is targeted.”
The news comes after the government yesterday awarded the full £3750 discount to the first two cars – the Ford Puma Gen-E and E-Tourneo Courier.
It means that 28 different models now qualify for a grant, with more likely to be added over the coming weeks.
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Just stop taxing electric cars and the electricity to charge them. That's a far better incentive than the taxpayer subsidising their sale.
Now just think about what you just blurted out there. If you don't tax EV's but continue to tax other cars then the tax payer is subsidising them!
This government is out to destroy his country. Anyone who voted this shxxshow into power should be ashamed. Why are we subsidising overpriced and frankly quite useless vehicles in the first place.
I question the use of the word 'loophole'. How can it be a loophole when they never published any criteria in the first place?
Anyone that buys an EV with a published list price under £40k, will receive a £2000 government subsidy.
There you go Ms Alexander, took an idiot like me all of 10secs to come up with a straighforward policy / criteria that everyone can understand. I mean if you want to make EV's look attractive on price, what's the frig'n problem? Why are you messing around with rules that nobody knows about? The fact you've already had to change it just shows your own department don't know what the hell the rules are.
No wonder government costs so much.