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Analysis

Is the government doing enough to incentivise households to go green?

Ben Chu asks whether recent ministerial decisions, such as cutting grants for electric car purchases, mean they are now undermining their stated goal of encouraging us to make more environmentally-friendy choices

Thursday 18 March 2021 19:46 GMT
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The government’s rationale for the changes in the electric car grant is that it doesn’t want to subsidise the well-off to buy expensive electric vehicles
The government’s rationale for the changes in the electric car grant is that it doesn’t want to subsidise the well-off to buy expensive electric vehicles (AFP via Getty Images)

The government’s decision on Thursday to reduce the electric car grant available to households by £500 and restrict it to vehicles on sale for under £35,000 has provoked dismay from the automotive industry – but it has also raised concern about how serious ministers are about creating incentives for households to opt for low or zero carbon technologies.

The car grant reduction comes in a context of apparent retreat from various other programmes also designed to encourage pro-environment decisions.

The £2bn Green Homes Grant – vouchers of up to £5,000 for homeowners to improve the energy efficiency of their homes – was introduced last summer, with the chancellor Rishi Sunak boasting it would help make over 650,000 homes more energy efficient.

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