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Government Electric Vehicle Subsidies Remain Unclaimed

Electric Vehicle Subsidies

£170m worth of Government electric vehicle subsidies are not expected to be claimed by the UK's fleet industry because demand for the technology is far lower than expected.

Whitehall had predicted 8,600 claims would be generated in the first year of the programme. But the Government now admit that the anticipated demand has fallen short of the mark.
According to a recent report by the Department for Transport, 6,709 claims had been made by the end of December at a maximum cost of £33.5 million.
Road Minister, Robert Goodwill, said: "Sales of ultra-low emission vehicles have been increasing year on year, but at a slower rate than originally anticipated.”

The Minister for the road claims:

"We are currently projecting to spend circa £230 million over the period. Grant uptake in 2013 was 335% higher than in 2011, grants in January 2014 were at a record level and 679% higher than the equivalent month in 2013.”
Up to £8,000 is available off the price of a new electric van but just 404 claims have been made since the scheme was introduced in January 2012.

A total of £400 million had previously been allocated to the fund to offer discounts on plug-in vehicles, but the Government now thinks just £230 million will have been claimed by the time the scheme reaches its conclusion in 2015.
The story has gained national coverage in the press, including the likes of the Telegraph newspaper, as yet another example of Green intentions, struggling to meet expectations.

Meanwhile, car scheme specialists Fleet Evolution has reportedly launched a salary sacrifice package for employees choosing an electric car.
The variant of the normal salary sacrifice car offering, Electric Flex, will allow customers to use up to four weeks of normal car use per annum.
Based in the Midlands, Fleet Evolution specialises in offering a selection of low emission vehicles and electric cars as part of a salary sacrifice benefits package for employees.

The Electric Flex scheme is a new initiative from Fleet Evolution aimed at increasing the number of electric vehicles chosen as a company car.


[Image courtesy of Andrew Curtis,]


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