Government to help more black cab drivers go green with further funding support

Published: 21 February 2024
By Chris Haycock

• Plug-in Taxi Grant extended until April 2025 at a rate of £6,000 per vehicle
• funding has been a success so far, with over £50 million provided to support the purchase of over 9,000 taxis – backing skilled British jobs
• the switch to electric is well underway, with over half of London’s taxis now being zero emission

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.

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.

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.

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.