The Government has said it recognises the importance of the plug-in-van grant to help fleets make the switch to electric vans, as adoption of green LCVs lags behind that of cars.
The Government withdrew the plug-in car grant (PiCG), which was worth up to £1,500 off an electric vehicle (EV), in June, last year.
Meanwhile, the level of the plug-in van grant was cut in December 2021. For small vans, 2.5 tonnes gross vehicle weight (GVW) or under, the grant had given consumers 35 per cent off the purchase price up to a maximum of £3,000 but that was reduced to £2,500.
For larger vans, 2-3.5 tonnes GVW, the grant was also cut, from a maximum of £6,000 to £5,000.
There were no changes to grant rates for vehicles over 3.5 tonnes.
The Government confirmed in March 2022, that fleets would have access to the plug-in van and truck grants for an additional two years, until 2025.
Debbie Culwick, deputy head of the Office for Zero Emission Vehicles (OZEV), said:
We recognise that new zero-emission vehicles still have a higher upfront cost than their petrol and diesel counterparts. We hope that the ZEV (zero emission vehicle) mandate will increase the volume and range of different models, and hopefully drive down costs as we move towards 2035. However, we know that the plug-in van grant continues to be an important mechanism for helping to reduce the upfront cost.
Culwick, who was appearing on the most recent Fleets in Charge webinar, run by the British Vehicle Rental and Leasing Association (BVRLA), added:
We continue to keep all grants under review to make sure that they are delivering the policy intent that we want and continue to be value for money for the taxpayer, which is really crucial whenever you look at Government spend.
However, she could not give any assurances over whether the policy would continue beyond 2025 when it is due to end.