Ministers have confirmed that the Plug-in Car and Van Grants will be extended until October 2018 to help further drive low-emission vehicle sales.

The Plug-in Car and Van Grants will be extended to October 2018

Previously the Government had said that the car grant would end in April 2018 but the latest announcement sees it remain in place at current levels until October 2018, and in some form until at least 2020.

The Plug-In Vehicle Grants provide up to £4.5k off the price of electric cars and up to £8,000 for vans.

Ongoing research globally has cemented the importance of EV incentives to buyers and recent research by OVO Energyfound that EV cost-saving credentials are more important for drivers than their eco benefits.

Tom Callow, director of strategy at Chargemaster, welcomed the news of the grant extensions, saying: “The continuation of the Plug-in Car Grant and Plug-in Van Grant is good news for car and van buyers, and provides a clear indication from government about the vehicles that deliver the lowest emissions and highest improvements in air quality.

“While government support for electric vehicles is very welcome, it’s important to note that these grants will not be needed indefinitely. Even on a Total Cost of Ownership basis, plug-in cars are already delivering significant savings for many drivers and fleets, and demand is consistently exceeding supply, with buyers ready to make the switch.”

The news, announced as the Government unveiled details for the world’s first-ever Zero Emissions Vehicle Summit, came as it also announced that it is considering providing grants and/or other financial incentives to support the use of e-cargo bikes.

This would be explored as part of further options for reducing emissions for last-mile deliveries, which will be set out by Cycling and Walking Minister Jesse Norman in a forthcoming call for evidence.