'Govt to provide £5k towards an electric vehicle purchase'

Car insurance policyholders who would like to invest in a green vehicle but find the prices too high will receive up to £5,000 towards the cost of such a model.

The Department for Transport is set to make going green easier for car and van insurance policyholders who wish to purchase a low carbon auto from January 2011.

Selected regions will be the first to receive the Plug-in Car Grant of up to £5,000 to fund a purchase of an ultra green model and the government has also announced a £30 million fund to create charging infrastructure for electric vehicles.

Transport secretary Andrew Adonis commented: "Decarbonising transport isn't an aspiration - it's a reality. By this time next year, cutting edge motorists will be on the roads with these next generation cars they've purchased because of our help."

He added that transport has a vital role to play in helping the UK meet emissions targets.

Meanwhile, business minister Pat McFadden said that low carbon vehicles are an important part of the broader move to a low carbon economy, adding: "The government is focusing on this sector as a priority and we are committed to helping British businesses take advantage of the growth potential and job opportunities this presents."

The scheme provides 25 per cent of the total cost of a green vehicle, with the maximum amount capped at £5,000.

Welcoming the announcement, the Electric Car Corporation said the government has used a positive measure to stimulate the vehicle market.

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