Government grants for taxi drivers

Programme funding available to support electric, low emission taxis


In March 2017 the Department for Transport announced a further £64 million of investment to promote the use of electric taxis.

This money will support drivers in two important ways:

1. A £50 million Plug-in Taxi Grant programme. This will give taxi drivers up to £7,500 off the price of a new vehicle. Taxi drivers who switch to the new electric cabs could also save around £2,800 in fuel costs a year.

2. £14 million of investment will deliver new dedicated charging points for electric taxis in 10 council areas. These include:

Birmingham (£2.9 million) Coventry (£1.2 million)
London (£5.2 million) Nottingham (£700,000)
Dundee (£515,000) The West Yorkshire Combined Authority (£1.98 million)
Oxford (£370,000) Cambridge (£426,000)
Wolverhampton (£478,000) Slough (£157,000)

These projects are expected to deliver around 400 rapid and 150 fast charging points which will enable the take-up of around 23,000 ULEV taxis nationally including supporting existing plug in private hire vehicles.

Learn more about the plug in taxi grant and dedicated charging points for taxis.

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As part of the Mayor of London's commitment to double spending on air quality over the next five years, TfL have allocated an additional £42 million for the taxi delicensing scheme.

The scheme offers owners of the oldest, most polluting taxis a payment of up to £5,000 to remove their vehicle from London's taxi fleet and to help make the switch to ZEC vehicles sooner than planned.

The Mayor has also called on Government for a national vehicle scrappage fund to complement this scheme and to help taxi drivers scrap their vehicles entirely. Read the full scrappage fund proposal.

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The Electric Vehicle Homecharge Scheme (EVHS) provides grant funding of up to 75% towards the cost of installing electric vehicle chargepoints at domestic properties across the UK.

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Transport Minister John Hayes said:

"This government is committed to improving air quality and reducing pollution in towns and cities, which is essential for people’s health and the environment. This is also great news for the economy as we invest in cutting edge technology and the next generation of transport and engineering professionals by creating thousands of new high-skilled jobs."