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If you are thinking of making the switch to electric - find out what financial support is in place to help you get started.
The future of electric motoring is now closer than you think. As a taxi driver, there are several taxi grants and incentives available to help you save on the cost of transitioning.
It may feel like a big switch to make, however there are a huge raft of benefits that come with owning an electric taxi, such as:
Going electric could save you up to £6,600 in fuel costs each year*. Plus, maintenance costs for EVs are typically lower and there is no road tax to pay.
Electric vehicles are exempt from congestion charges in Clean Air Zones (CAZ) and Low Emission Zones (LEZ) across the country.
As many as 90% of customers actively look for green travel options*. Going electric will help improve your image and attract more customers.
Below you can find information on the taxi grants and incentives available to help taxi drivers make the switch to electric.
This page will be regularly updated to make sure it contains the most up to date taxi grant information.
Schemes provided by the UK Government (Office for Zero Emission Vehicles) covering the whole of the UK.
Schemes may have individual area restrictions.
An incentive scheme designed to support taxi drivers buying purpose-built ULEV taxis. It aims to bridge the cost gap between petrol or diesel taxis and new ultra-low emissions models.
The offer: Discounts on the price of eligible taxis of up to £6,000.
Conditions: Only available for new purpose-built ULEV taxis that meet the eligibility criteria.
The discount amount varies depending on the current type of taxi you own.
An electric vehicle chargepoint grant designed to help towards the cost of installing a charging socket at your property.
The offer: You can get either £350 or 75% off the cost of buying and installing an electric vehicle chargepoint socket, whichever amount is lower.
Conditions: You must live in a rented property or own a flat and have dedicated off-street parking. You must also own, lease or have use of an eligible electric or plug-in hybrid vehicle.
Local authorities have a crucial role to play in enabling the transition to EVs in their areas. The scheme aims to increase on-street charging in residential areas where there is no off-street parking to do so. This will ensure on-street parking is not a barrier to realising the benefits of owning an EV.
The offer: Not directed at a specific owner, drivers can speak to their respective council about an EV charge point near where they live. Local authorities can apply for a goverment grant to cover part of the installation costs for residents who lack off-street parking. The grant rate is set at up to £6,500 per charge point, plus 75% of the installation costs for the charge point and an associated dedicated parking bay.
Conditions: This funding is available to local authorities for eligible projects as specified.
Taxi schemes provided by local councils which are limited to specific areas.
The offer: Birmingham City Council are offer financial support packages aimed at private hire drivers. There are three schemes available, each helping drivers to upgrade their taxi to one which complies with the city's CAZ restrictions. These are: Scheme A (up to £1,000), Scheme B (up to £2,000), or Scheme C (up to £10,000).
Conditions: To apply for one of these government grants, you must be the registered private hire driver of a vehicle subject to daily Clean Air Zone (CAZ) charges. You must have been the owner or keeper of this vehicle since 8th September 2018, and you must be licensed with Birmingham City Council. Whether your vehicle is compliant or non-compliant, there are several documents you'll need to provide to show you are eligible.
The offer: Bristol City Council are offering taxi drivers grants and loans to help reduce the cost of replacing or adapting non-compliant vehicles. Private hire drivers can apply for up to £1,500 financial support, while hackney cab drivers can apply for up to £4,000.
Conditions: To apply for financial support, you must be a registered taxi driver licensed with Bristol City Council. You must also regularly enter the CAZ and have an income of less than £30,000. You'll need to demonstrate proof of ownership for at least 12 months and present the V5C vehicle logbook.
The offer: Newcastle and Gateshead City Councils are offering government grants to help replace older, more polluting taxis. These help fund the purchase of either a new or used compliant vehicle. Regular taxis (both hackney and private hire) can get up to £3,500 financial support. Meanwhile, wheelchair-accessible taxis (both hackney and private hire) can get up to £4,000.
Conditions: As a taxi driver, you will need to meet several requirements to apply for a grant. Full requirements can be reviewed on the CAZ's criteria page. You'll need to be a licensed hackney or private hire driver in Newcastle, Gateshead, or North Tyneside, and your taxi must be subject to CAZ charges.
The offer: If you are a taxi driver in Sheffield, you can apply for financial support from the government to upgrade or replace an older, more polluting vehicle. This comes in the form of either a grant, interest subsidised loan, or a combination of both. This is only available for like-for-like replacements (you must sell the old vehicle), and is calculated at 30% of the 'net purchase' price.
Conditions: To apply for a taxi grant, you must currently hold a license with Sheffield or Rotherham Council and have done so for 12 months. You must also be either a business or self-employed driver registered in either of these areas. There are two stages to the application process, and only successful applicants will be passed onto stage 2.
Schemes provided by the Scottish Government (Transport Scotland) covering the whole of Scotland.
Schemes may have individual area restrictions.
The switched on taxis loan is funded by Transport Scotland and can help you purchase new electric vehicles. The loan is open to operators and owners of hackney cabs and private-hire taxi drivers. We consider purpose-built, public-hire taxis to be hackney cabs.
The offer: Interest free (0%) taxi loan repayable over six years for those switching to ultra-low emission taxis. Limited companies can borrow up to £150,000; sole traders or partnerships can borrow up to £75,000.
Conditions: You must be an operator or owner of hackney cabs or private-hire taxis and operate in Scotland.
The used electric vehicle (EV) market has been growing and is a great place to start if you're looking to save money and reduce your carbon emissions.
The offer: Interest-free (0%) government loan repayable over five years for those purchasing a used electric vehicle. Maximum loan amount is £30,000.
Conditions: The vehicle must be bought from a dealership accredited by the Motor Ombudsman. Alternatively, part of a trade association signed up to the National Conciliation Service.
Energy Saving Trust is offering a grant to contribute towards the purchase and installation of home chargepoints for EVs.
The offer: Provides up to £400 towards the cost of purchasing and installing home chargepoints for electric vehicles.
Conditions: You must own or lease an electric vehicle and live in Scotland.
Now you know about the different government grants and incentive schemes available to taxi drivers, you might want to know more about the electric taxis we sell and the different finance options on offer.
At The Taxi Centre, we offer new electric taxis for sale which may be eligible to purchase with the help of a taxi grant or incentive, along with a selection of finance packages available to help suit your budget. If you have any questions, get in touch with a member of our friendly team who will be able to help.
How can The Taxi Centre help you with taxi grants?
Our expert team are always on hand to help you with any queries or questions you may have regarding taxi grants and schemes. Get in touch with our team today to discuss your taxi needs.
How do finance and payment plans work with taxi grants?
All grants and incentives work differently, and there is no standard way of working for finance and payment plans. We can liaise with the provider of the scheme to ensure any grants are properly processed.
When will new taxi grants and schemes become available?
There is no standard timeline on when new schemes will become available. However, in the UK and Scotland, announcements are usually made in March of each year in line with Government budget announcements. If new financial support schemes for taxi drivers are revealed, be assured we will keep this page updated with the most up to date information.
*The total running cost savings based on the following conditions / assumptions: 1. Daily mileage: 120 miles; 2. Number of working days: 5 days; 3. Number of weeks in a year: 50 weeks; 4. Models used for comparison: TX4 Euro 6 and TX; 5. Charging method: home charging overnight to full battery before start of work and rapid charging for 20mins when the battery is flat; 6. Fuel and electricity costs are as of Oct 2022.
Consumer data from the Expedia Sustainable Travel Study, Apr 2022.
