EV Subsidy - Example of UK Gov screw up

[Mr Gear]

In relation to this news:

http://www.bbc.co.uk/news/business-11985866

So, you get a straight £5,000 grant for any electric vehicle on the market. I think this subsidy is important to help manufacturers take the plunge and gear up for mass-producing something new.

But is it not over-simplifying things to just give a straight £5k regardless of the price of the car and the wealth of the buyer?

Why is there NO SUBSIDY AT ALL for electric motorcycles and scooters? Not only are these more energy efficient, they also alleviate other problems relating to cars such as parking and congestion. £5k gets a lot of electric bike...

[davepoth]

£5k is more or less the premium over a normal car for the cheapest end of the market. So it works fine there, people who spend more on a car get less of a grant. Seems fair to me.

[hombrepaulo]

Isnt it 25% up to a max of £5k?

[Mr Gear]

hombrepaulo said:

Isnt it 25% up to a max of £5k?

Yes, it is, but since all of the cars currently available are able to claim the full £5k, it's irrelevant in a way. And it does seem perverse that someone able to fork out for the most expensive electric car gets a £5k pat on the back from the government, and yet the people who would get the most benefit are unable to afford to hop on the bandwagon.