The government has announced a new grant that will help to reduce the cost of some new electric cars by as much as £3,750.
This comes as part of a wider push from the Department for Transport (DfT) to encourage drivers to move away from petrol and diesel vehicles.
These cars have a negative impact on the environment, pumping out greenhouse gas emissions like CO2 and air pollution.
London, like many other cities, has been taking action on a local level, creating the ULEZ, or the Ultra Low Emission Zone, which is a designated area in the capital where vehicles must meet certain emission standards to avoid a daily charge.
The UK government has also pledged to ban the sale of new fully petrol or diesel cars and vans by 2030.
A major practical obstacle to overcome is charging points to support a growing number of electric vehicles. As it stands, there are roughly 1.3 million electric cars on the roads in the UK, but only 82,000 public chargers.
As reported by the BBC, Transport Secretary Heidi Alexander said at the weekend that the government has committed to invest £63m to fund EV charging points.
However, this grant aims to be another carrot to the other stick-like measures. Here’s a closer look at what it entails.
What is the grant?
For eligible electric vehicles up to a cost of £37,000, customers could benefit from discounts of up to £3,750, thanks to the grants. On the UK market right now, there are 33 electric car models under £37,000.
The DfT has said that the most environmentally friendly vehicles will get the biggest price reductions, ranging from £1,500 to £3,750 at the upper limits.
EVs have been arranged into bands, with each band qualifying for different discounts. UK-made cars are expected to qualify for the top band and biggest discounts, while Chinese-made vehicles (often the cheapest on the market) are expected to get the lowest discounts.
These grants will be funded through a £650m government scheme and will be available for the next three years.
How can I claim?
Car buyers will be able to claim a discount directly from car dealerships. With the grant now approved, carmakers will be able to start applying for funding from Wednesday, July 16.
From there, the discounts should trickle through to consumers quickly, with the RAC estimating that discounted cars should start appearing at dealerships within weeks.
Am I exempt from ULEZ fees with an electric car?
Because ULEZ charges are based on tailpipe emissions, EVs are free from the fees.
This is because EVs produce zero emissions and therefore cannot incur the daily charges.
