Taxi industry concerned about future of £7,500 electric Plug-in Taxi Grant

The Licensed Taxi Drivers’ Association (LTDA) has raised concerns regarding the future of the taxi plug-in grant, a £7,500 subsidy provided by the Government towards the purchase of new electric taxis.

Steve McNamara, General Secretary of the LTDA, expressed worry that the grant, which is currently guaranteed until 2024, might not be continued.

With the recent decision by the Government to extend the deadline for the ban on the sale of diesel and petrol cars, taxi drivers fear that the plug-in grant funding might be at risk. In response to this concern, the LTDA has actively engaged with key decisionmakers to emphasise the importance of this grant for the industry and highlight the potential consequences if it were to be withdrawn.

McNamara said in TAXI Newspaper: “An issue raising concern at the moment is the fact that the taxi plug-in grant, the £7,500 grant taken off the price of a new electric taxi is only currently guaranteed until 2024.

“With the Government pushing back the date for ending the sale of diesel and petrol cars, there is concern that this grant could not be continued. We are making sure key decisionmakers understand the importance of this grant for our industry and what would likely happen if it was withdrawn. We’ve made a submission to the Treasury ahead of the Autumn Statement, written to the Ministers leading on Net Zero and transport decarbonisation and we are speaking to contacts at the Office for Zero Emission Vehicles and Number 10.

“It’s vital that they continue to support hardworking drivers who are investing in these expensive vehicles and doing their part to help clean up our air.”

Under the Plug-In Taxi Grant (PiTG) scheme, taxi drivers and businesses purchasing or leasing a new purpose-built electric taxi can receive a discount of up to £7,500 or £3,000, depending on the vehicle's emissions and zero-emission range.

Eligible taxis are classified into two categories based on their carbon emissions and zero-emission range. Category 1 vehicles, such as the popular LEVC TX model, must have a zero-emission range of 70 miles or more and emissions below 50gCO2/km. Category 2 vehicles require a zero-emission range of 10 to 69 miles and emissions below 50gCO2/km.