‘MORE MUST BE DONE’: Taxi booking app FREENOW warns more government support is needed as black cab grant decreases
Declining financial support could slow down the shift to greener black cabs, warns taxi booking app FREENOW.
Today the Government extended the Plug-in Taxi Grant for another year, but drivers will have to make do with less financial support. The grant, designed to help taxi drivers switch to electric vehicles, will be reduced from £6,000 to £4,000 per vehicle from 6 April 2025.
This marks the second reduction in two years. The grant was previously cut from £7,500 to £6,000 in early 2024. While the extension offers continued support, the lower amount raises concerns about the financial burden on drivers.
Sam Pooke, FREENOW’s Senior Policy Manager, welcomed the extension but warned that declining support could slow the transition to greener taxis. He highlighted that black cab numbers are at a 40-year low and called for stronger government action to meet net zero targets and the Mayor’s Transport Strategy.
FREENOW reports that over 70% of its taxi trips are completed using electric black cabs. However, Pooke stressed that further investment is needed to sustain this shift. He suggested that the Government introduce a scheme similar to Scotland’s Switched On Taxis Loan programme, which could be trialled in London or expanded across England to help drivers finance new or used electric taxis.
Pooke said: “It’s encouraging to see the Plug-in Grant extended, but disappointing to see its reduction for a second year in a row from £6,000 to £4,000. The taxi industry is at a crisis point, and black cab vehicle numbers are at a 40 year low. This funding is crucial for facilitating the transition to greener taxis. More must be done if the Government and the Office of Zero Emission Vehicles (OZEV) wish to take meaningful action to support drivers and fulfil the ambitions outlined in the Mayor’s Transport Strategy and the 2030 net zero targets.
“Over 70% of FREENOW taxi trips are done with EV black cabs. But this national shift will require continued stronger public-private collaboration to invest where it matters most. We would strongly encourage the Government to introduce and replicate the success of Scotland’s Switched On Taxis Loan programme, which could be piloted in London or rolled out across England, helping drivers secure a new or used purpose built electric black cab.
“We’re doing our part by supporting black cab drivers with the costs associated with EV charging. But we can't do it alone.”
