DfT tightens EV grant rules, capping high-spec models at £42,000

The Department for Transport (DfT) has updated the eligibility rules for the UK’s electric automotive grant, tightening the edge for higher-spec models.

When the Government launched its latest £650 million grant scheme last month, only electric vehicles (EVs) priced at £37,000 or below were eligible for the money incentive.

On the time higher-spec trims of base models under that £37,000 limit were also allowed to qualify.

From today, the DfT has introduced a cap of £42,000 for costlier trim levels. Vehicles with a purchase order price exceeding this amount are actually officially not eligible for grant support.

A DfT spokesperson said: “The utmost price limit ensures only eligible cars priced on the lower end of the market can qualify for the discounts, ensuring government support is targeted.”

The change comes shortly after Ford became the primary manufacturer to receive the total £3,750 grant for 2 of its EVs – the Ford Puma Gen-E and Ford E-Tourneo Courier – recognised for his or her environmental credentials.

Meanwhile, 4 additional vehicles – the Peugeot E-308, Peugeot E-408, DS 3 and DS No4 – also became eligible, although they qualify just for the lower £1,500 grant. The overall number of electrical vehicles now qualifying for the scheme has risen to twenty-eight.

Marc Palmer, head of insights at Auto Trader commented: “For the reason that launch of the electrical automotive grant, consumer demand for brand spanking new EVs on Autotrader has seen a major uptick and when eligible models are announced, advert views for these cars surge by up 10 times.

“Affordability is the largest barrier to electric adoption, but we will see these grants are reducing that for a lot of drivers and helping to make sure there’s an EV for everybody. The federal government’s latest step to tighten the eligibility criteria and introduce a top-level cap for eligible variants is a positive step because it implies that more individuals who genuinely need support will give you the option to access the grant.”