UK extends electric taxi subsidy until spring 2025

The British government is continuing its subsidy for electrified taxis until April 2025, but is reducing the amount of the subsidy from £7,500 to £6,000 per vehicle - equivalent to a reduction in the subsidy amount from around €8,760 to €7,000.

Image: LEVC

Since its launch in 2017, the UK government has made more than £50 million (just over €58 million) available to support the purchase of over 9,000 electrified taxis through the Plug-in Taxi Grant programme. The main criterion for the subsidy is that taxis must be able to drive purely electrically, among other things. Plug-in hybrids are therefore also subsidised.

The maximum grant will now be reduced from £7,500 to £6,000 per vehicle as part of the extension of the programme. The eligibility requirements are still being updated by the Office for Zero Emission Vehicles (OZEV) in parallel. Anthony Browne, UK Minister for Technology and Decarbonisation, commented: “Taxis are a vital part of our transport network, so it’s great that we are supporting our iconic taxi industry with further funding to help decarbonise their vehicles, as part of the Government’s plan to support drivers.”

More than half – around 8,299 of London’s licensed taxis – are now said to be electric, according to official figures. In the past year alone, the number of electric taxis has risen by 24%. The British government had already discontinued its subsidy programme for the private purchase of electric cars in mid-2022. The subsidy programme for electric delivery vans, electric taxis and electric motorbikes continued at the time.

The Licensed Taxi Driver Association is also supportive of the new announcement, as General Secretary Steve McNamara stated: “Today’s announcement provides the certainty and support hard working taxi drivers and fleets need to continue investing in the future of this important sector and delivering the high-quality, accessible service London’s iconic black cabs are known for, all whilst helping to clean up our air and working towards net zero.”


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