Government EXTENDS Plug-in Taxi Grant for another year but drops the value to £4,000
Taxi drivers looking to transition to electric cabs will continue to benefit from government support, with the Department for Transport extending its £4,000 grant for another year.
The funding aims to make switching to zero-emission black cabs more affordable, helping drivers cut running costs while reducing emissions in cities.
The grant applies to new electric taxis, including the iconic black cab, offering drivers a financial incentive to upgrade. This move is part of a wider £120 million package designed to accelerate the adoption of cleaner vehicles across the transport sector.
Today announcement means the Plug-in Taxi Grant will reduce from £6,000 to £4,000 per vehicle. This follows a previous reduction in early 2024, when the grant was decreased from £7,500 to £6,000. The grant is now extended for another year to support taxi drivers transitioning to electric vehicles, but at a lower value. The new value will be effective as of 6 April 2025.
In addition, the cap on the Plug-in Wheelchair Accessible Vehicle Grant has been raised from £35,000 to £50,000. This increase is expected to provide disabled passengers with a broader range of vehicle options, improving accessibility while encouraging the uptake of zero-emission transport.
The taxi industry has been a key focus in the UK’s transition to electric, with government-backed grants helping to drive the shift. With the continued expansion of charging infrastructure and further investment in clean transport, electric taxis are set to become an increasingly common sight on Britain’s roads.
Lilian Greenwood, Future of Roads Minister, said: “From van drivers and businesses, to drivers with accessibility needs, bikers and cabbies, today we are making it easier, faster and cheaper for people to switch to electric vehicles.
“By making the transition to zero emissions a success, we’re helping to drive growth all over the UK, putting more money in people’s pockets and rebuilding Britain to deliver our Plan for Change.”
