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Government Pulls The Plug On The Plug-In Grant For EVs

By David Bailey, Professor – Aston Business School

by Keerat

David Bailey


The really surprising thing about the UK government announcing recently that it was scrapping the plug-in car grant (PICG) for battery electric vehicles is that it was actually a surprise at all.

First introduced in 2011 and worth £5000, over time the PICG was whittled down and narrowed in scope several times. By March 2021 it had been cut to £2,500, and only available for EVs worth less than £35,000. In December 2021, the PICG was cut again to £1500 and in its last incarnation was only available to EVs costing less than £32,000.

And the government had been trying for some time to scrap it completely. Only a major backlash a couple of years ago when it last tried to scrap the PICG forced the government to do a speedy handbrake turn and keep it going for a while longer.

That doesn’t mean the announcement has been well handled. It hasn’t.

The ongoing high level of demand for EVs (...

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