Plug-in taxi grant extended for another year

The government has extended the UK’s plug-in taxi grant until 2025 but slashed its value.

The Office for Zero Emission Vehicles (OZEV) said that as a result of its success the scheme, which has been in place since 2017, will be extended until April 2025.

However, the maximum funding has been cut from £7,500 to £6,000 for vehicles with the longest electric ranges.

Since its inception, the scheme has provided £50 million in grants to aid the purchase of 9,000 plug-in taxis such as the LEVC TX.

According to the OZEV, one in 12 of all taxis in the UK are plug-in and more than half (54%) of London’s licensed taxis are now electrified, with the number growing by 24% in the last year. In 2022 zero emissions-capable cabs outsold diesel taxis for the first time.

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.

“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.”

Chris Allen, managing director at London EV Company 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.”

Mariusz Zabrocki, General Manager at ride hailing app Freenow UK added: “We are delighted to see that the government has extended the grant. The cost of EV taxis can be prohibitive for drivers and this grant can certainly support drivers to make the switch to EV.

“Over 70% of Freenow taxi trips are done with EV black cabs. The transition to electric vehicles is a national effort and will require targeted support if we are to see a step-change in EV take-up. Affordable and equitable access to rapid EV charging continues to be one of the main challenges for taxi drivers, particularly in the city centre.”

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Matt Allan

Matt is Editor of EV Powered. He has worked in journalism for more than 20 years and been an automotive journalist for the last decade, covering every aspect of the industry, from new model reveals and reviews to consumer and driving advice. The former motoring editor of, The Scotsman and National World, Matt has watched the EV landscape transform beyond recognition over the last 10 years and developed a passion for electric vehicles and what they mean for the future of transport - from the smallest city cars to the biggest battery-powered trucks. When he’s not driving or writing about electric cars, he’s figuring out how to convert his classic VW camper to electric power.