Uncertainty over Plug-In Taxi Grant leaves cab drivers in last-minute limbo to invest
The black cab industry is once again facing uncertainty as the future of the Plug-In Taxi Grant (PiTG) hangs in the balance in England. With the grant only guaranteed until April, the Licensed Taxi Drivers’ Association (LTDA) is calling for an urgent extension to provide financial stability for drivers looking to invest in new electric cabs.
The PiTG currently offers a £6,000 subsidy towards the purchase of new zero-emission taxis, helping drivers transition to cleaner vehicles. Previously set at £7,500, the grant was cut in 2023, making it harder for drivers to afford the switch. Without an extension, the industry could face another setback as cab prices rise and incentives disappear.
Steve McNamara, General Secretary of the LTDA, has warned that drivers should plan ahead, as any delay in purchasing a new taxi could leave them exposed to higher costs. A decision on the grant is expected before the Budget at the end of March, but the lack of clarity is already creating uncertainty for those whose cabs are approaching their age limit.
If the grant is scrapped, the financial impact on taxi drivers could be severe. Even with no finance involved, new electric black cabs cost upwards of £70,000, and without government support, many may struggle to make the investment. This could slow the shift towards a fully electric fleet, affecting both the industry and efforts to cut emissions.
The LTDA continues to push for the grant’s extension and an increase back to £7,500, arguing that long-term certainty is needed to support drivers and encourage wider adoption of electric vehicles. For now, the only certainty is that time is running out for those hoping to benefit from the scheme.
McNamara said in TAXI Newspaper: “You will read a lot in this edition of TAXI about the uncertain future of the Plug-In Taxi Grant (PiTG). We continue to fight for its extension and repeating our calls for it to be funded for a longer period of time to provide certainty for drivers and to increase it back to £7,500, but we simply do not know what will happen yet.
“We are told that a decision should be made in the next month, hopefully before the Budget at the end of March, so it’s not at the very last minute like last time it was extended. That being said, if you are thinking of purchasing a new cab or making plans for when your cab hits its age limit and needs to come off, then it might be worth considering bringing your plans forward if you can. Making the jump in March could avoid you getting hit by a potential increase in the cost of the cab that could take effect from April, if the grant goes.
“I can’t predict the future, so I leave it to all of you to weigh up the pros and cons but all I know is that the only thing that’s certain right now is that it is only guaranteed until April. I will keep you updated as we are told anything more.”
