More green taxis will take to the UK’s roads thanks to an extension to the Plug-in Taxi Grant announced today (21 February 2024), following its initial success.

Cab drivers will be able to keep up momentum through extended funding until 5 April 2025 at a rate of £6,000 per vehicle, providing certainty to those who are looking to make the switch to electric in the next year.

Since its introduction in 2017, the Plug-in Taxi Grant has been met with enthusiasm, providing more than £50 million to support the purchase of over 9,000 zero emission cabs – supporting skilled British jobs in the car industry and helping to decarbonise the taxi fleet.

As a result of the grant driving change in industry, over 54% (8,299) of London’s licensed taxis are now electric, with the number of electric taxis increasing by 24% in the last year alone as more drivers utilise government funding.

Technology and Decarbonisation Minister, Anthony Browne, said:

Taxis are a vital part of our transport network, so it’s great to be supporting our iconic black cab industry with further funding to help decarbonise their vehicles, part of this government’s plan to back drivers.

From Redbridge to White City, it’s now more likely than ever that your black cab will be green, with the majority of taxis sold in London now being electric. The grant has been a huge success so far, and I’m pleased our funding will be continued for another year to help cabbies make the switch to new vehicles.

The electric taxi market has grown rapidly since the grant’s introduction, with sales overtaking the number of diesel taxis sold in London in 2022, marking a milestone for the sector. Nationally, more than one in ten (12%) taxis are now zero emission capable.

The government is continuing to target incentives where they have the most impact while delivering value for money for the taxpayer, which is why a reduced grant level of £6,000 has been chosen to support the market as it matures further.

Chris Allen, Managing Director at London EV Company said:

Today’s announcement is a positive signal to the taxi trade that the government remains committed to supporting the electrification of our iconic industry and provides important support for drivers for another 12 months.

LEVC is continually innovating to deliver the latest in clean, accessible mobility solutions. We will continue to work with government to deliver for drivers and passengers across the UK.

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Steve McNamara, General Secretary of the Licensed Taxi Drivers Association said:

London’s licensed taxi drivers are proud to be leading the way in adopting zero emission electric taxis. Our members have invested record sums in these clean, green vehicles and the PiTG has played a vital role in making this possible.

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.

Since 2011 the government has provided over £1.9 billion in grant funding to decarbonise our roads, supporting the purchase of over 350,000 zero emission vehicles.

These measures follow the department’s recent announcement that the rollout of EV chargepoints is being accelerated through our Plan for Drivers. There are now over 55,000 public chargepoints across the country, with the number of chargepoints rising 46% over the last year.

Grants are also available to help the transition through the government’s workplace charging scheme (WCS) for businesses and schools, as well as people in flats and rented accommodation through the electric vehicle chargepoint grant. 

In addition, the on-street residential chargepoint scheme is open to all UK local authorities, while £381 of Local Electric Vehicle Infrastructure (LEVI) funding is already being delivered to English local authorities.