The government has extended the plug-in taxi grant to 5 April 2025 at a reduced rate of up to £6,000 per vehicle following its success over the last seven years.
Since being introduced in 2017, the plug-in taxi grant has provided upwards of £50 million to support the purchase of more than 9,000 zero-emission cabs. Over half (54% or 8,299) of London’s licensed taxis are now electric.
The number of electric taxis has increased by 24% in the last year alone, with sales overtaking the number of diesel taxis sold in London in 2022. The Government says this is from more drivers using the grant.
On a national scale around 12% of taxis are now zero-emission capable.
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While the extension sees the grant level reduced from £7,500 to £6,000 per vehicle, the government believes that it will still facilitate the drive for more electric taxis and also deliver value for money for the taxpayer.
Technology and decarbonisation minister Anthony Browne, said: “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.
“The plug-in taxi 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.”
These extended measures follow the department’s recent announcement that the rollout of EV charge points is being accelerated through its Plan for Drivers, with the number of public charge points around the country (now 55,000) rising by 46% over the last year.
London EV Company managing director Chris Allen said: “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”.
“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.”
Licensed Taxi Drivers Association general secretary Steve McNamara said: “London’s licensed taxi drivers are proud to be leading the way in adopting zero emissions electric taxis.
“Our members have invested record sums in these clean, green vehicles and the plug-in taxi grant has played a vital role in making this possible.”
