The Government has renewed its commitment to low carbon transport by announcing (19.01.12) that the Plug-in Car Grant has been extended until 2015 and a new Plug-in Van Grant has been created.

According to the Government these grants will enable the purchase of ultra-low carbon vehicles which may otherwise be unaffordable. The existing Plug-in Car Grant offers 25% - up to £5,000 - to motorists buying a new plug-in car. Under the terms of the new scheme, van buyers will be able to receive 20% - up to £8,000 - off the cost of a plug-in van.

Each van qualifying for the new scheme must emit less than 75g/km CO2, be capable of at least 60 miles between charges (10 miles in electric mode for hybrid vans), more than 50mph and to ensure safety, be approved by 'European Vehicle Type Approval'. Ultra-low carbon van manufacturers will be able to apply to be part of the Plug-In Van Grant - which will help to improve local air quality in cities, reduce carbon emissions and meet Government carbon reduction targets.