08/12/2015
The landscape of urban transport in the UK is undergoing a significant transformation, with electric vehicles increasingly taking centre stage, especially within the taxi industry. This shift is driven by a collective effort to improve air quality, reduce carbon emissions, and provide a more sustainable future for our cities. However, the initial outlay for these advanced, eco-friendly vehicles can often be a considerable barrier for many taxi drivers and businesses. To mitigate this, the UK government introduced the Plug-in Taxi Grant (PiTG), a crucial incentive designed to make the transition to electric taxis more accessible and financially viable. But a common question that arises for many drivers is whether this valuable grant extends to second-hand vehicles, or if it's exclusively for brand-new models. Let's delve into the specifics of the PiTG and clarify this important point.

What Exactly is the Plug-in Taxi Grant (PiTG)?
At its core, the Plug-in Taxi Grant is a government-backed scheme aimed at encouraging taxi drivers across the United Kingdom to invest in purpose-built, ultra-low emissions taxis. These vehicles, primarily electric, represent the vanguard of sustainable transport, offering significant environmental benefits over traditional internal combustion engine (ICE) vehicles. The PiTG acts as a financial sweetener, providing a discount on the purchase price of eligible taxis, thereby helping to offset the often higher upfront cost associated with their cutting-edge technology and advanced powertrains. It’s a direct contribution towards a greener, cleaner taxi fleet for the nation.
The grant amounts offered under the PiTG scheme vary, depending on the specific characteristics of the taxi, including its zero-emissions range, CO2 emissions, and overall design. Drivers can typically receive a minimum of £3,000 or a maximum of £6,000, making a substantial difference to the total cost. Crucially, all taxis seeking this grant must be wheelchair-accessible, reinforcing the commitment to inclusive public transport. Vehicles are categorised into two main groups based on their environmental performance:
- Category 1: Up to £6,000 – This top-tier grant is available for taxis that boast a zero-emissions range of at least 70 miles or more, coupled with CO2 emissions of less than 50g/km. These vehicles represent the pinnacle of electric taxi technology, offering extended range and minimal environmental impact.
- Category 2: Up to £3,000 – For taxis with a zero-emissions range falling between 10 and 69 miles, and still maintaining CO2 emissions of less than 50g/km, a grant of up to £3,000 is available. These vehicles still contribute significantly to emissions reduction, particularly in urban environments.
Any taxi driver or business is eligible to apply for the grant, provided their chosen vehicle meets the stringent criteria and is a new, purpose-built taxi. It’s important to note that the application process isn't a direct one from the driver to the government. Instead, vehicle manufacturers first seek approval for their models, and once approved, authorised dealerships handle the claim on your behalf, integrating the grant directly into the purchase price at the point of sale.
Are Second-Hand Taxis Eligible for the PiTG? The Definitive Answer
This is perhaps the most frequently asked question regarding the Plug-in Taxi Grant, and the answer is unequivocal: No, second-hand taxis are not eligible for the PiTG. The scheme is specifically designed to incentivise the purchase of new purpose-built, ultra-low emissions taxis. The official guidelines clearly state that the grant is only available for new vehicles that are wheelchair-accessible and meet all other stringent eligibility criteria. This focus on new vehicles helps to stimulate the market for advanced electric taxis, ensuring the latest technology and highest environmental standards are adopted within the fleet.
While this might be disappointing news for those looking to acquire a pre-owned electric taxi, the rationale behind it is sound. The grant aims to accelerate the transition to zero-emission transport by supporting the initial investment in new, cleaner vehicles. This approach helps to establish a robust market for electric taxis, which will eventually lead to a greater availability of used electric taxis in the future, as the initial grant-funded vehicles enter the second-hand market. For those interested in used electric vehicles, other schemes, such as the Used Electric Vehicle Loan (as mentioned in the source material), might be more appropriate, though these are separate from the PiTG.
Eligibility Criteria: What Makes a Taxi PiTG-Ready?
Beyond being a new vehicle, there are several key criteria that both the taxi itself and the applicant must satisfy to be considered eligible for the PiTG. The Office for Zero Emissions Vehicles (OZEV) is the governing body that determines vehicle eligibility, relying exclusively on Worldwide Harmonised Light Vehicle Test Procedure (WLTP) data to assess emissions and range. This ensures a standardised and accurate measurement of a vehicle’s environmental performance.
For the vehicle itself, the requirements are comprehensive:
- New Vehicle Status: As established, it must be a brand-new vehicle.
- Wheelchair Accessibility: This is a non-negotiable requirement. The taxi must be a Wheelchair Accessible Vehicle (WAV).
- Emissions and Range: It must fall into either Category 1 or Category 2 based on its zero-emissions range and CO2 output.
- Type Approval: The vehicle must have been approved by OZEV, meaning its specifications and performance have been verified.
- No Left-Hand Drive: Applications will not be accepted for left-hand drive vehicles, reflecting the UK's right-hand drive road system.
- Performance Standards: The vehicle must meet specific requirements concerning manoeuvrability (e.g., turning circle), minimum speed capabilities, and other operational standards relevant to taxi service.
For the taxi driver or business applying for the grant (via the dealership), the primary requirement is to be registered with a local licensing authority and to be able to present a valid operator license. This ensures that the grant is supporting legitimate taxi operations within the regulated framework.
The Application Process: Seamless for the Driver
One of the most user-friendly aspects of the PiTG scheme is that you, as the taxi driver or business owner, do not need to apply for the grant directly. This simplifies the process considerably, allowing you to focus on choosing the right vehicle for your needs. Instead, the heavy lifting is done by the vehicle manufacturers and the approved dealerships.
Here's how it generally works:
- Manufacturer Approval: Vehicle manufacturers first submit their specific taxi models to OZEV for approval. This involves rigorous testing and verification of the vehicle's compliance with all PiTG eligibility criteria, including emissions, range, and wheelchair accessibility.
- Dealership Access: Once a model is approved, authorised dealerships gain access to an online portal managed by OZEV. This portal is where they register claims on behalf of their customers.
- Point of Sale Discount: When you decide to purchase an eligible new taxi from an approved dealership, the grant amount is directly deducted from the vehicle's price at the point of sale. You pay the reduced price, and the dealership or manufacturer receives the grant payment from OZEV on a monthly basis.
This streamlined process means that if you're looking for a PiTG-eligible taxi, such as the widely recognised LEVC TX, your primary task is simply to select your vehicle. The financial administration of the grant is then handled by the professionals, ensuring a smooth and hassle-free transaction.
Spotlight on an Eligible Vehicle: The LEVC TX
A prime example of a taxi that fully qualifies for the PiTG scheme is the LEVC TX. Designed by the London Electric Vehicle Company (LEVC), the TX represents a significant leap forward for the taxi industry, embodying the transition towards electric propulsion while retaining the iconic aesthetic of the traditional black cab. Introduced in 2019, the TX seamlessly blends classic design with cutting-edge eCity hybrid technology, offering a driving experience that is both environmentally conscious and highly practical for urban operations.

The powertrain of the LEVC TX is a sophisticated combination of an electric battery and a small 1.5-litre petrol engine, which acts as a range-extender. This innovative setup provides drivers with exceptional flexibility through three distinct driving modes:
- Smart Mode: This is the default operating mode, intelligently designed to maximise the use of battery energy before the range-extender engages. It's an efficient mode, perfect for longer intercity journeys where the range-extender only activates when the battery charge naturally depletes, optimising fuel consumption.
- Save Mode: As its name suggests, Save mode allows the driver to conserve the current battery charge for later use. In this mode, the range-extender is activated to power the vehicle, preserving the electric range. This is particularly useful for journeys where a driver anticipates entering a Low Emission Zone (LEZ) or Ultra Low Emission Zone (ULEZ) later in their shift, allowing them to switch to Pure EV mode just before entering these areas.
- Pure EV Mode: This mode dedicates the vehicle to solely electric power, completely disabling the range-extender. It's the ideal choice for driving within urban centres and LEZs, ensuring zero tailpipe emissions. The driver will be alerted when the battery charge becomes low, prompting them to select a different driving mode if sufficient charge is available or to seek a charging point.
Beyond its advanced powertrain, the LEVC TX is designed with comprehensive wheelchair accessibility, featuring ramps, ample interior space, and a range of additional accessibility features that can be incorporated to accommodate all passengers comfortably. Its blend of heritage, innovation, and environmental responsibility makes it a popular choice for taxi drivers looking to embrace the future of urban transport with the support of the PiTG.
| Grant Category | Maximum Grant Amount | Zero-Emissions Range | CO2 Emissions |
|---|---|---|---|
| Category 1 | £6,000 | 70 miles or more | Less than 50g/km |
| Category 2 | £3,000 | Between 10-69 miles | Less than 50g/km |
Frequently Asked Questions About the PiTG
Navigating government grants can sometimes feel complex, so here are answers to some of the most common questions regarding the Plug-in Taxi Grant:
Q: Can I get a grant for a used electric taxi?
A: No, the Plug-in Taxi Grant (PiTG) is exclusively available for the purchase of new, purpose-built, wheelchair-accessible taxis. Second-hand vehicles do not qualify for this specific grant.
Q: How much can I save with the PiTG?
A: You can save either £3,000 or £6,000, depending on which eligibility category your chosen new taxi falls into. This is determined by its zero-emissions range and CO2 emissions.
Q: Who administers the PiTG?
A: The scheme is administered by the Office for Zero Emissions Vehicles (OZEV), a government body responsible for promoting the uptake of zero-emission vehicles in the UK.
Q: Do I apply for the grant myself?
A: No, you do not apply directly. The application process is handled by the vehicle manufacturer and the approved dealership from whom you purchase the eligible new taxi. The grant amount is then deducted from the purchase price at the point of sale.
Q: What kind of taxis are eligible for the PiTG?
A: Only new, purpose-built, wheelchair-accessible taxis with ultra-low emissions are eligible. They must meet specific criteria set by OZEV regarding their zero-emissions range and CO2 output, as well as other vehicle specifications like manoeuvrability and minimum speed.
Q: Why is the grant important for taxi drivers?
A: The grant is crucial because it significantly reduces the initial financial barrier to purchasing a new electric taxi. Electric taxis, while offering long-term savings on fuel and maintenance, often have a higher upfront cost. The PiTG makes these vehicles more affordable, accelerating the transition to a greener fleet, which benefits both drivers and the environment.
Q: Can I use the grant for any electric car?
A: No, the PiTG is specifically for purpose-built taxis that are wheelchair-accessible. It is not available for standard electric cars or other types of electric vehicles.
Conclusion
The Plug-in Taxi Grant is a pivotal initiative designed to propel the UK's taxi industry towards a more sustainable and environmentally friendly future. While it offers substantial financial incentives, it's critical to understand that these benefits are exclusively reserved for the purchase of new, purpose-built, wheelchair-accessible taxis. This ensures that the grant supports the introduction of the latest, most efficient, and cleanest vehicles onto our roads, directly contributing to improved air quality and reduced carbon footprints in our urban centres. For taxi drivers contemplating the switch to an electric vehicle, the PiTG represents a powerful opportunity to invest in a cleaner, more cost-effective future, all while contributing to the nation's environmental goals. By working with approved dealerships, the path to securing this grant and driving a new, cutting-edge electric taxi is smoother than ever.
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