WILL THE £6,000 TAXI GRANT BE EXTENDED? Why the Plug-in Taxi Grant remains vital for the taxi industry
With just months left on the Plug-in Taxi Grant (PiTG) scheme to run, taxi drivers remain in the dark as to whether the funding will continue past Spring 2025.
The PiTG, launched in 2017, has been instrumental in supporting drivers transitioning to zero-emission vehicles. By offering up to £6,000 towards the cost of a new electric taxi, the grant has helped over 9,000 drivers invest in greener vehicles, injecting more than £50 million into this shift.
The support has seen to been vital, as the cost of an electric taxi, such as the £65,000 LEVC TX, remains significantly higher than conventional alternatives.
Without the grant, the financial burden of going electric will fall squarely on drivers. A £6,000 price hike would likely deter many from making the switch, potentially putting the Government’s clean air targets at risk.
The impact of a vehicle price hike could also ripple through to passengers, as operating costs influence fare structures. Higher costs for drivers could mean increased tariffs for passengers, further complicating the industry’s transition to affordable sustainability.
While the grant has been extended before, its future beyond April 2025 is uncertain. Industry stakeholders argue that a long-term commitment is essential to ensure progress. The grant has already boosted electric taxi adoption in London, where over half the licensed fleet now operates zero-emission vehicles. However, with taxi vehicle affordability remaining a key challenge in most regions nationally, the PiTG’s continuation could prove decisive.
