No current plans for interest-free loans on greener taxis, confirms DfT minister
Updated: 11 hours ago
A Department for Transport (DfT) minister has confirmed there are no current plans to introduce an interest-free loan scheme to support taxi drivers purchasing greener LEVC TX models.
Responding to a question raised by Labour MP Margaret Mullane, the Department for Transport said it would not be adopting a new policy offering interest-free finance matched to the retail price of the LEVC TXE.
Simon Lightwood, a Department for Transport minister, said the existing Plug-in Taxi Grant (PiTG) remains the main support for drivers. He noted that, as of October 2024, 60% of London’s licensed taxi fleet are now zero emission capable.
The Government has extended the PiTG into the 2025/26 financial year, although the grant has been reduced to £4,000 per vehicle. The grant was previously as high as £7,500 when it was first introduced.
There has been growing pressure from industry figures and politicians to explore more accessible financial routes for drivers moving to low and zero emission vehicles, particularly as the cost of vehicles such as the LEVC TX remains high.
Despite this, the Government reiterated that there are currently no plans to provide interest-free loan schemes to taxi drivers making the shift.
Minister Lightwood said: “As of October 2024, 60% of actively licensed London taxis were zero emission capable (ZEC). The Plug in Taxi Grant (PiTG) has been crucial in supporting taxidrivers to make this transition to ZEC vehicles and decarbonise our roads.
“On 25 February 2025, the Government announced that the PITG will be extended into the 2025/26 financial year with a reduced rate of £4,000 per eligible vehicle.
“The Government does not currently intend to introduce an interest-free loan scheme for taxi drivers.”
