Guidance

Plug-in taxi grant: eligibility and applications

Updated 8 April 2024

The plug-in taxi grant (PiTG) has been introduced as an incentive scheme designed to support the uptake of purpose built ULEV taxis.

It is designed to bridge the cost gap that currently exists between taxis powered by internal combustion engines versus new ultra-low emission technologies.

What the PiTG offers

The PiTG scheme offers a discount on the price of eligible taxis of up to a maximum of £6,000 or £3,000, depending on the vehicle’s range, emissions and design. One of the requirements is that the vehicle should be wheelchair accessible.

Under the scheme, eligible taxis are allocated into 1 of 2 categories based on their carbon emissions and zero-emission range.

Category 1 PiTG (up to £6,000)

A zero-emission range of 70 miles or more and emissions of less than 50gCO2/km.

Category 2 PiTG (up to £3,000)

A zero-emission range of 10 to 69 miles and emissions of less than 50gCO2/km.

All taxi drivers and businesses buying or leasing a new purpose-built taxi can benefit from the grant if the vehicle is eligible. You can find out more about which vehicles are eligible.

They do not need to apply directly for the PiTG. Vehicle manufacturers should apply for their models to be approved for the grant. Then approved dealerships and manufacturers should make a claim on behalf of the customer. You can find out more about the application process.

How the scheme operates

The PiTG is only available to newly purchased taxis. Second-hand taxis will not be eligible for the grant.

Conversions of vehicles into taxis after they have been registered will also not be eligible for the grant.

Eligible vehicles

From 1 September 2019, OZEV only accepts Worldwide Harmonised Light Vehicle Test Procedure (WLTP) results to determine whether the conditions in categories 1 and 2 have been met. For ULEV taxis, the WLTP ‘electric city range’ will be accepted as evidence that the zero-emission range condition is met.

The grant is only available for new purpose-built ULEV taxis that meet the eligibility criteria.

OZEV reserves the right to alter the criteria, if, for example, during the course of the PiTG there are changes to relevant regulations or standards.

The necessary type approvals will need to be obtained before an application to the scheme is submitted to the VCA.

Details of the relationship between OZEV and the applicant will be provided in an agreement when one of its vehicles has been considered eligible. The vehicle will be formally approved for the scheme when the agreement is signed and returned.

Vehicles with multiple variants

In cases where an applicant is applying for more than one variant of the same vehicle to become eligible for the scheme, a single reference number and agreement will be used to cover the different variants.

This is provided that the different variants are covered by the same type approval and warranty terms.

New variants of a vehicle that is already eligible for the grant are not automatically eligible. A variant of a vehicle that requires an extension to type approval documentation will need to be approved separately. Manufacturers should apply for these new variants to be approved under the grant scheme.

If you are unsure whether a new variant of a vehicle needs to be approved, please contact PlugInApprovals@vca.gov.uk.

Applying for the grant

Once a vehicle has been formally approved for the scheme, the manufacturer and its selected dealerships will be given access to an online portal, through which they can register claims for eligible vehicles.

Claims will be paid to the manufacturer on a monthly basis. Further details of this process will be made available to the applicant once a vehicle has been formally approved for the scheme.

From the customer’s point of view, the PiTG is deducted from the price of the vehicle at the point of sale by the dealership, so there is no paperwork for them to complete in order to benefit from the grant.

For an approved vehicle to go on to receive the grant, it also must be sold and used as a licenced taxi.

Application process

Manufacturers or their UK sole authorised representatives wishing to apply for a vehicle to become eligible for the PiTG should:

• complete form A : PiTG scheme number application
• complete form B: plug-in taxi grant application cover sheet
• attach the required supporting evidence in English

Form A should be submitted to PlugInApprovals@vca.gov.uk in the first instance.

The VCA will then supply access to the large file transfer system for submission of Form B and supporting evidence.

Detailed guidance on how to complete the application form is available.

Any questions regarding the application process should be sent to PlugInApprovals@vca.gov.uk

The assessment process

We will aim to process applications as quickly as possible. Applications will be processed as soon as they are received and we would hope to make a decision within 2 months. This depends on the complexity of the application and whether further technical information is required.

An application for the approval of a new type of ULEV taxi to receive the PiTG must be made in writing to the VCA. Such applications can only be submitted once the required type approval for the vehicle has been obtained.

This application must be approved by OZEV prior to any vehicle being eligible to receive the PiTG.

The assessment process is as follows:

1. Applicant submits completed Form A: Plug-in taxi grant scheme number application to PlugInApprovals@vca.gov.uk.
2. VCA provides a scheme number and access to the file transfer system.
3. Manufacturer submits Form B: Plug-in taxi grant application cover sheet and the required supporting evidence to the file transfer system.
4. The VCA confirms the application has been received and is complete or requests further information.
5. The VCA confirms the validity of type approval certificates and warranty documentation presented as evidence
6. The VCA either:
   - decides that the application has passed
   - decides that the application has failed
   - requests further information from the applicant
   - requests advice from independent technical experts before coming to a decision
7. If the vehicle passes the assessment process, an offer letter will be sent by OZEV to the applicant setting out the terms of acceptance.
8. If the vehicle fails, a letter will be sent to the applicant by OZEV explaining the reasons why and recommending steps that the vehicle manufacturer might wish to take before resubmitting an application.
9. If the vehicle passes, OZEV will upload its make, model and trim onto the eligible vehicles list.

Costs

Cases where independent technical expertise is needed to assess applications are likely to be rare. In such cases, however, there may be a cost to the applicant.

Independent technical advice is most likely to be required for battery or fuel cell degradation.

OZEV will let the applicant know if this applies to enable the applicant to decide whether they wish to meet those costs or to withdraw the application.

Review of decision

Applicants have a right to seek a review of the VCA’s decision. Further detail would be provided to the applicant in the letter advising that the application had been unsuccessful.

If significant further work is required to validate the submitted evidence, the applicant may be asked to meet those costs. OZEV will let the applicant know if this applies, in order to enable the applicant to decide whether they wish to meet the costs or to withdraw the application.

Applicants are encouraged to contact OZEV with any specific questions.