A long-term extension to the plug-in car grant, providing support to those buying low emissions vehicles has been announced by the government.
The grant will continue beyond the latest guarantee of February 2016 until 'at least the end of March 2018'.
Ministers hope this will mean more than 100,000 people benefit over the coming years — double the number who have already claimed the grant since 2011.
From next March, buyers of the greenest cars can save up to £4,500 off the overall purchase price with the grant.
Transport minister Andrew Jones said: 'The UK is a world leader in the uptake of low emission vehicles and the plug-in car grant has been key to that success.
'Extending the grant in a sustainable way ensures more than 100,000 people will benefit from financial support when purchasing these cheap-to-run and green cars. We are determined to keep Britain at the forefront of the technology, increasing our support for plug-in vehicles to £600 million over the next 5 years to cut emissions, create jobs and support our cutting-edge industries.'
From 1 March 2016, two grant rates will be available. ‘Category 1’ vehicles with a zero emission range of over 70 miles will benefit from a grant of £4500.
‘Category 2 and 3’ vehicles with a shorter zero emission range — such as plug-in hybrid vehicles with a petrol or diesel engine — will receive £2500.
Hydrogen fuel cell vehicles are also eligible for the £4500 grant thanks to their zero tailpipe emissions.