The Government has revealed there will two plug-in grant rates from March 1, 2016.

Vehicles with a zero emission range of more than 70 miles – category one – will benefit from a grant of £4,500, while vehicles with a shorter zero emission range — category two and three such as plug-in hybrid vehicles with a petrol or diesel engine — will receive £2,500.

Previously, plug-in car applicants could receive up to £5,000 of a plug-in car.

A price cap will also be introduced from March 1, 2016. Category two and three models with a list price of over £60,000 will not be eligible for the grant, but all category one vehicles with a zero emission range of more than 70 miles will be eligible for the full £4,500 grant.

Thanks to a £400 million package, the grant will continue until at least the end of March, 2018, and will mean more than 100,000 people will benefit — double the number who have already claimed the grant since 2011.

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