Extended Plug-in Taxi Grant reduced to £6,000

The government has announced that the Plug-in Taxi Grant will be extended until 5 April 2025, but has dropped the rate to £6,000 per vehicle.

The price of the grant was previously up to £7,500, and was set to expire on 31 March 2024.

The government says the Plug-in Taxi Grant has provided more than £50m to support the purchase of over 9,000 zero emission cabs since its introduction in 2017.

It says it is now targeting incentives where they have the "most impact whilst delivering value for money for the taxpayer", which is why it has been reduced.  

Technology and Decarbonisation Minister Anthony Browne said: “Taxis are a vital part of our transport network, so it’s great to be supporting our iconic black cab industry with further funding to help decarbonise their vehicles, part of this Government’s plan to back drivers.

“From Redbridge to White City, it’s now more likely than ever that your black cab will be green, with the majority of taxis sold in London now being electric. The grant has been a huge success so far, and I’m pleased our funding will be continued for another year to help cabbies make the switch to new vehicles.”

Chris Allen, Managing Director at London EV Company said: "Today’s announcement is a positive signal to the taxi trade that the government remains committed to supporting the electrification of our iconic industry and provides important support for drivers for another 12 months.

"LEVC is continually innovating to deliver the latest in clean, accessible mobility solutions. We will continue to work with government to deliver for drivers and passengers across the UK.

Steve McNamara, General Secretary of the Licensed Taxi Drivers Association said: "London’s licensed taxi drivers are proud to be leading the way in adopting zero emission electric taxis. Our members have invested record sums in these clean, green vehicles and the PiTG has played a vital role in making this possible.

"This announcement provides the certainty and support hard working taxi drivers and fleets need to continue investing in the future of this important sector and delivering the high-quality, accessible service London’s iconic black cabs are known for, all whilst helping to clean up our air and working towards net zero."