Motorists purchasing a qualifying ultra-low emission car can receive a grant of 25 per cent towards the cost of the vehicle, up to a maximum of £5,000. The 2010 Spending Review confirmed that Government has made provision to support the Plug-in Car Grant for the life of this Parliament.

To ensure continued value for money for the taxpayer, the scheme, and the level of subsidy provided, will be regularly reviewed. The first review of the Plug-In Car Grant will take place in early 2012.

The Plug-In Car Grant has been designed to help make the whole-life costs of a qualifying car more comparable with petrol or diesel equivalents. Over time, as manufacturers begin to make these cars in greater volumes, the costs of production should begin to fall. This will help to make an ultra-low carbon car a realistic option for anyone looking to buy a car.

Both private consumers and businesses can benefit from the Plug-In Car Grant when purchasing a qualifying ultra-low emission car and registering it in the UK.

As of 30 September 2011, 786 claims have been made through the Plug-In Car Grant scheme, with Society of Motor Manufacturers and Traders (SMMT) data showing that 910 cars eligible for the Grant were registered over the same period.

Source: Department of Transport