Future of vital Plug-in Taxi Grant continues to be unclear as it ‘remains under review’
The future of the Plug-in Taxi Grant (PITG), a key support mechanism for the transition to zero-emission capable taxis, remains uncertain beyond April 2025.
The programme, introduced in 2017, has so far allocated over £70 million to help fund more than 10,000 cleaner vehicles for the UK’s taxi fleet.
Louie French, Shadow Parliamentary Under Secretary for Culture, Media and Sport, recently posed a direct question to the Department for Transport about the Government’s plans for PITG funding beyond April 2025.
Responding to the query, Simon Lightwood, Department for Transport Minister, confirmed that PITG is funded until at least the end of the current financial year. He emphasised that “all grants and taxation measures remain under review” to ensure they deliver value for taxpayers.
The uncertainty leaves drivers and manufacturers in limbo as they plan future investments. With the Government pushing for a fully electrified transport system, clarity on long-term funding for green initiatives like PITG remains a priority for many stakeholders.
The Plug-in Taxi Grant (PiTG) is a UK government initiative launched in 2017 to encourage taxi drivers to adopt ultra-low emission vehicles (ULEVs). By offering financial incentives, the scheme aims to bridge the cost gap between traditional internal combustion engine taxis and newer, cleaner technologies.
The PiTG provides discounts on the price of eligible new purpose-built taxis, offering up to £6,000 or £3,000, depending on the vehicle’s specifications.
To qualify, vehicles must be wheelchair accessible and fall into one of two categories:
Category 1: Vehicles with a zero-emission range of 70 miles or more and CO₂ emissions below 50g/km are eligible for a grant of up to £6,000.
Category 2: Vehicles with a zero-emission range between 10 to 69 miles and CO₂ emissions below 50g/km can receive up to £3,000.
