Government to change criteria for plug-in car grants

The government has changed the criteria for its grants for plug-in cars, it has announced.

Ultra-low emission vehicles (ULEVs) are becoming increasingly popular across the UK – in 2014 the total numbers of sales was around four times that of the previous year. Moreover, in January alone, a typically quiet month for car buying, almost 2,000 grant claims were made for finances towards a ULEV, with more than 25,000 plug-in grant claims submitted since the scheme began in 2010.

As these vehicles become more popular, many car dealers will consider stocking plug-in cars, but to do so they might require a change to their road risks insurance policy. It is always important to consider the range of vehicles covered by this type of insurance as specialist, classic or high performance cars might require additional levels of cover.

In light of the popularity of the government funding scheme for plug-in cars, it has been revealed that the criteria for the grants has changed. Specifically, a new banding system has been introduced to help prioritise grants once 50,000 have been claimed.

The first category is for cars that have CO2 emissions of less than 50g/km and a zero emission range of at least 70 miles. The second is those that have CO2 emissions of less than 50g/km and a zero emission range between 10 and 69 miles. The third is for those with CO2 emissions of 50-75g/km and a zero emission range of at least 20 miles.

The category of the vehicle, which illustrates how environmentally friendly the car is, will determine the size of the grant the car buyer will be able to apply for.