Ultra low emission vehicles in the UK: measures to support use and development, 2015 to 2020

Explains the main elements of a £500 million package to support the development and use of ultra low emission vehicles (ULEVs) in the UK.



The Deputy Prime Minister has announced the main elements of a £500 million package of measures to support the the development and use of ultra low emission vehicles (ULEVs) all the way out to 2020. This follows a call for evidence, launched in November 2013, to inform the design of the new package.

ULEVs are a vital part of the government’s plans for a modern transport system that promotes economic growth while benefiting the environment. With all these benefits for people, the economy and environment we want to secure the UK’s position as a global leader in both the production and use of these vehicles.

This publication provides an overview of the main themes that emerged from the call for evidence and outlines the different elements of the new package, including the following measures:

  • £100 million for research and development
  • at least £200 million on the continuation of the Plug In Car Grant, with the grant staying at £5,000 off the price of a new ULEV (until 50,000 grants or 2017)
  • £31 million grant support for other ULEV sectors, including vans
  • a new £35 million cities scheme to support flagship cities in introducing innovative local incentives, such as free parking, access to bus lanes and ULEV car clubs
  • £20 million to encourage a new generation of ultra low emission taxis
  • £30 million to boost the low emission bus market
  • at least £32 million on new infrastructure including rapid chargers
  • £4 million to ensure the UK has the gas refuelling facilities HGVs need to support our freight and logistics operators in their efforts to reduce the environmental impact of their business

We haven’t allocated all the £500 million at this stage. We are also looking to support other technologies as they come to market. We are positioning the UK to be a lead market for the introduction of hydrogen fuel cell vehicles. We will announce the actions that both government and industry stakeholders will be taking to achieve this later this summer.

This new package builds upon our existing policies to provide one of the most comprehensive, and innovative, support packages for the transition to ULEVs anywhere in the world.