Cuts for hybrid vehicles in reformed PICG

The Department for Transport has announced changes to funding to support purchasing the next 35,000 of the cleanest vehicles, but have scrapped grants for new plug-in hybrids in the process.

Under the reformed Plug-In Car Grant (PICG), coming into force on 9 November, grants for new plug-in hybrids will be scrapped while discounts on all-electric cars will be cut from £4,500 to £3,500. Introduced seven years ago to help the market become established, the cash incentive change has been criticised by the motoring industry who argue that it is a ‘backward step’.

Having recently published the Road to Zero strategy, with a proposal to remove petrol and diesel cars from UK roads by 2050, the government has stressed that it is now time to focus support on zero-emission models such as pure electric and hydrogen fuel cell cars.

Since its introduction, the PICG has supported the purchase of over 160,000 new cars, 100,000 of which are plug-in hybrids.