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Extension for the Plug-in Van Grant

 Published 4th April 2022
General Guides  Low Emission Vehicles 

Drivers and businesses looking to switch to an electric van (eLCV) can do so in the knowledge that the UK Government's Plug-in Van Grant (PiVG) has been extended for at least another two years - until the end of March 2024.

In a recent shake up of grants for both vehicles and charge points, the PiVG has been tweaked, but remains available, with two different levels depending on the electric van's rating.

It's part of the Government's desire to provide certainty to a sector it seeks to encourage fleet decarbonisation.

New small electric vans, those with a gross vehicle weight of less than 2,500kg, CO2 emissions of less than 50 g/km, and a minimum electric-only range of 60 miles, will receive up to £2,500 off the RRP cost.

New large electric vans between 2,500kg and 3,500kg - and also with the < 50g/km CO2 and 60+ electric miles minimum requirements - get up to £5,000 taken off the RRP. These grants are available to leasing customers, and will be reflected in the monthly costs quoted.

The grant will also cover electric van ups to 4.2 tonnes which can be driven on a conventional driving licence provided they are fully electric.

The move will help drivers transition to electric vans, with the forthcoming ban on the sale and lease of new conventional petrol and diesel cars due to come in from 2030 in the UK.

"The LCV market in general - and in particular the eLCV sector - is growing rapidly, largely in response to online shopping, boosted by shopping habits created during various Covid lockdowns", commented Rob Marshall, Operations Director at Gateway2Lease.

As such, the confirmed extension of the PiVG is a really positive move, helping operators reduce the cost of eLCV leasing with the grant. Even if van fleets are not quite ready to electrify, I would encourage them to start the process, particularly examining the strategy behind the electrification process. The two-year window will close surprisingly quickly."

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