Why the end of the Government’s Plug-in Taxi Grant could cost taxi drivers MORE than just the £6,000 grant value
The possible end of the Plug-in Taxi Grant (PiTG) scheme in April 2025 has thrown the taxi industry into a state of uncertainty. With no word from the Department for Transport on a possible extension, taxi drivers across the UK are beginning to face an economic dilemma that could hamper the adoption of zero-emission vehicles.
Since its launch in 2018, the PiTG has provided taxi drivers with funds, currently worth up to £6,000, towards the purchase of zero-emission capable cabs. The scheme has supported the sale of over 9,000 vehicles, making it a cornerstone in the decarbonisation of the UK’s taxi fleet.
If the £6,000 grant was to end, the real cost to drivers could be much higher once interest costs are factored in.
An LEVC TX electric taxi, the most popular choice among drivers, carries a cash unit price tag upwards of £60,000. Few drivers can afford to buy outright, relying instead on financing options that spread the cost over several years. For many, this adds a significant premium. In some cases, financing can increase the overall cost by more than a third. As a result, an extra £6,000 added to the vehicle price tag could also see interest payments potentially exceed by around £2,000 depended on the size of the initial deposit made.
The PiTG has been instrumental in transforming London’s iconic black cab fleet, with more than 60% now comprising zero-emission capable vehicles. Collectively, these vehicles have travelled nearly one billion miles and saved 300,000 tonnes of CO2 emissions. Yet, with less than three months until the grant’s scheduled conclusion, the lack of clarity from officials has left drivers questioning the Government’s commitment to sustainable transport.
London has led the charge, requiring all new taxis to be zero-emission capable since January 2018. However, meeting the city’s ambitious climate goals depends on sustained incentives to help drivers cover the steep costs of electric cabs. Without this, there’s a risk that the pace of adoption will falter, jeopardising the progress made over the past seven years.
The PiTG’s uncertain future highlights the need for long-term strategies to support industries at the forefront of the green transition. As the Government pushes for a net-zero economy, addressing the real costs to drivers is critical in ensuring the shift to sustainable transport remains viable.
