Motorists around the UK will be able to make use of the Governmentâs Plug-in Taxi Grant after it was extended until April 2025.
New changes will see the Plug-in Taxi Grant fall from a maximum discount of £7,500 to £6,000, as the Government highlighted the success of the scheme so far.
Since its introduction, the PiTG has provided more than £50million to support the purchase of over 9,000 zero emission cabs as the UK continues its journey to get more electric vehicles on the roads.
As a result of the grant, over 54 per cent of Londonâs licensed taxis are now electric, with the number of EVs rising by 24 per cent in the last year alone.
The electric taxi grant has been cut from £7,500 to £6,000
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To qualify for the grant, the vehicle must be a purpose-built taxi, have CO2 emissions of less than 50g/km and be able to travel at least 70 miles without any emissions.
There are only two eligible taxis available for the grant including the Dynamo Taxi and LEVC TX.
Technology and Decarbonisation Minister, Anthony Browne, said: âTaxis are a vital part of our transport network, so itâs great to be supporting our iconic black cab industry with further funding to help decarbonise their vehicles, part of this Governmentâs plan to back drivers.
âFrom Redbridge to White City, itâs now more likely than ever that your black cab will be green, with the majority of taxis sold in London now being electric.
âThe grant has been a huge success so far, and Iâm pleased our funding will be continued for another year to help cabbies make the switch to new vehicles.â
In 2022, electric taxis overtook the number of diesel taxis sold, with 12 per cent of all taxis nationwide now being zero emission.
Through the Governmentâs grant scheme, more than £1.9billion in grant funding has been handed out to support the purchase of over 350,000 cars, motorcycles, vans, taxis, trucks and wheelchair accessible vehicles.
Chris Allen, managing director at London EV Company, the manufacturer of one of the most popular electric taxi models on the market said the announcement was a âpositive signalâ to protect the âiconic industryâ.
He continued, saying: âLEVC is continually innovating to deliver the latest in clean, accessible mobility solutions.
âWe will continue to work with Government to deliver for drivers and passengers across the UK.â
The Plug-in Car Grant was scrapped in 2022 in a move that surprised the industry, prompting many manufacturers and sector experts to call for Government incentives to return.
Steve McNamara, General Secretary of the Licensed Taxi Drivers Association said: âLondonâs licensed taxi drivers are proud to be leading the way in adopting zero emission electric taxis.
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The electric taxi grant has been extended until April 2025
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âOur members have invested record sums in these clean, green vehicles and the PiTG has played a vital role in making this possible.
âTodayâs 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 Londonâs iconic black cabs are known for, all whilst helping to clean up our air and working towards net zero.â
The GOV.UK website still states that taxis can be sold at a 20 per cent discount with a maximum discount of £7,500, although this is expected to change shortly.
