Cab drivers will be able to keep up momentum through extended funding until 5th April 2025 at a rate of £6,000 per vehicle, providing certainty to those who are looking to make the switch to electric in the next year.
Since its introduction in 2017, the Plug-in Taxi Grant has been met with enthusiasm, providing more than £50 million to support the purchase of over 9,000 zero emission cabs – supporting skilled British jobs in the car industry and helping to decarbonise the taxi fleet.
As a result of the grant driving change in industry, over 54 percent (8,299) of London’s licensed taxis are now electric, with the number of electric taxis increasing by 24 percent in the last year alone as more drivers utilise Government funding.
“Taxis are a vital part of our transport network, so it’s great to be supporting our iconic black cab industry with further funding to help decarbonise their vehicles, part of this Government’s plan to back drivers” said Technology and Decarbonisation Minister Anthony Browne. “From Redbridge to White City, it’s now more likely than ever that your black cab will be green, with the majority of taxis sold in London now being electric. The grant has been a huge success so far, and I’m pleased our funding will be continued for another year to help cabbies make the switch to new vehicles.”
The electric taxi market has grown rapidly since the grant’s introduction, with sales overtaking the number of diesel taxis sold in London in 2022, marking a milestone for the sector. Nationally, more than one in ten (12 percent) taxis are now zero emission capable.
The Government is continuing to target incentives where they have the most impact whilst delivering value for money for the taxpayer, which is why a reduced grant level of £6,000 has been chosen to support the market as it matures further.
“Today's announcement is a positive signal to the taxi trade that the Government remains committed to supporting the electrification of our iconic industry, and provides important support for drivers for another 12 months” added Chris Allen, Managing Director at LEVC (London EV Company). “LEVC is continually innovating to deliver the latest in clean, accessible mobility solutions. We will continue to work with Government to deliver for drivers and passengers across the UK.”
Since 2011 the Government has provided over £1.9 billion in grant funding to decarbonise UK roads, supporting the purchase of over 350,000 zero emission vehicles.
These measures follow the Department for Transport’s recent announcement that the rollout of EV chargepoints is being accelerated through the government’s Plan for Drivers. According to the government, there are now over 55,000 public chargepoints across the country, with the number of chargepoints rising 46 percent over the last year.
Grants are also available to help the transition through the government’s Workplace charging scheme (WCS) for businesses and schools, as well as people in flats and rented accommodation through the Electric vehicle chargepoint grant. In addition, the On-street residential chargepoint scheme (ORCS) is open to all UK local authorities, while £381 of Local Electric Vehicle Infrastructure funding is being delivered to English local authorities.
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