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UK: Slow sales could see £170m of electric car grants go unclaimed

Government green car grants worth £170m could be unclaimed by 2015 as electric car sales fail to take off

Millions of pounds worth of government grants designed to encourage the purchase of ‘ultra low-emissions’ vehicles may remain unclaimed by 2015.

The scheme set up in 2011 by then transport secretary Philip Hammond, has failed to meet initial predictions so far. £400 million was set aside to fund grants of up to £5,000 for anyone purchasing an eligible hybrid or electric car. However, slow uptake of these vehicles has forced the government to accept that only £230 million may actually be handed out by the 2015 deadline, leaving £170 million unclaimed.

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Roads minister Robert Goodwill said: “Sales of ultra low emission vehicles have been increasing year on year, but at a slower rate than originally anticipated. We are currently projecting to spend £230 million over the period.
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