UK car drivers can no longer benefit from a £1,500 ($1,809) grant for EV purchases, as the government has ditched the subsidy scheme running for the past 11 years, Kallanish reports.

The Department for Transport (DfT) announced the decision to end the scheme with immediate effect on 14 June. It will refocus £300 million ($361.76m) in grant funding to boost sales of plug-in taxis, vans, trucks, motorcycles and wheelchair accessible vehicles instead.

“Successive reductions in the size of the grant, and the number of models it covers, have had little effect on rapidly accelerating sales or on the continuously growing range of models being manufactured,” DfT says. “Due to this, the government is now refocusing funding towards the main barriers to the EV transition, including public charging and supporting the purchase of other road vehicles where the switch to electric requires further development.”

Despite claims to expand the public charging network to help “eradicate range anxiety,” no new investment has been announced. The UK government had already committed to allocating £1.6 billion to build public charging infrastructure.

DfT says the “successful scheme” created a “mature market” for EVs and benefitted almost 500,000 cars, with a subsidy that started at £5,000. Its end has been met with criticism, as EV purchase affordability remains a clear barrier to fleet electrification.

“The UK’s adoption of electric cars is so far impressive, but in order to make them accessible to everyone, we need prices to fall - having more on the road is one important way of making this happen, so we're disappointed the government has chosen to end the grant at this point,” says RAC head of policy Nicholas Lyes.

SMMT ceo Mike Hawes says the decision sends the wrong message to motorists and industry, which remains committed to the binding UK net-zero ambition.

“We are now the only major European market to have zero upfront purchase incentives for EV car buyers yet the most ambitious plans for uptake,” he adds. “With the sector not yet in recovery, and all manufacturers about to be mandated to sell significantly more EVs than current demand indicates, this decision comes at the worst possible time.”

“We’re disappointed by the removal of the grant, in a move that comes before EVs reach price parity with ICE vehicles, widely expected to happen in the next few years,” says the Electric Vehicle Association.