Government firms-up£5k electric car incentive

Ministers have provided more detail on forthcoming incentives to encourage the uptake of electric cars.

The plans, first outlined last April, will allow people who buy a qualifying ultra-low emissions vehicle (ULEV) to receive a grant worth 25% of the vehicle's value, up to a maximum of £5,000.

The Department for Transport (DfT) has now said that the 'Plug-in Car Grant' will operate in a similar manner to the scrappage scheme, with motorists paying the discounted price and the manufacturer being responsible for claiming the subsidy back.

But while the scrappage incentive was made up of equal contributions from the Government and car manufacturers, the new grant is set to be wholly provided from the public purse in an attempt to encourage "pioneering motorists" to take up new technology.

However, it will not be available until January 2011, at which point ministers expect a wider range of eligible vehicles to be available. In its previous announcement, the Government made clear that only electric, or plug-in electric hybrids would qualify, seemingly precluding currently popular models such as Toyota's Prius.

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