WILL THE PLUG-IN TAXI GRANT DRIVE ON? Government support for cleaner zero-emission black cabs could stop soon
Updated: Jan 19
With just months remaining until the Plug-in Taxi Grant (PiTG) scheme concludes in April 2025, the taxi industry is left in limbo. Drivers and industry stakeholders are questioning whether the Government will extend funding vital to maintaining the current pace of zero-emission vehicle adoption.
The PiTG has been a cornerstone of the UK’s drive to decarbonise its taxi fleet. Since its introduction in 2018, the grant has enabled over 9,000 taxi drivers to purchase low-emission cabs, providing financial relief of up to £6,000 per eligible vehicle. In total, more than £50 million has been invested in the scheme, cementing its importance in the transition to greener urban transport.
More than 11,000 LEVC TX electric vehicles are now in service globally, with over 60% of London’s black cab fleet comprising zero-emission capable vehicles. Together, these vehicles have clocked a staggering 998 million miles, equivalent to circling the globe approximately 40,000 times. The resulting environmental benefits are significant, with 300,000 tonnes of CO2 emissions avoided.
Despite this success, the industry’s reliance on the grant raises questions about the sustainability of progress without continued support. With less than three months before the scheme’s end date, no clear signals have emerged from the Department for Transport regarding a possible extension.
For London, where the push towards zero-emission transport is closely tied to climate targets, the stakes are particularly high. Transport for London’s regulations requiring all new taxis to be zero-emission capable since January 2018 have been critical in driving adoption. However, achieving the city’s environmental goals will likely require sustained investment in such initiatives.
While the PiTG has played a vital role, the shift to electric cabs remains a costly business for drivers. Without financial incentives, many fear a slowdown in adoption rates, potentially jeopardising gains made over the past seven years.
The uncertainty surrounding the grant’s future adds to a broader conversation about the Government’s role in supporting the transition to a green economy. As local and national authorities set ambitious climate targets, maintaining momentum in key sectors such as transport will be crucial.
