More than 200 plug-in vehicles are expected to be added to public sector fleets as the next phase of the ultra-low emission vehicles (ULEV) scheme begins.
The first phase saw 15 Government departments launch reviews of their vehicle fleets and will see around 150 vehicles begin to enter fleets from February.
The second phase is open to the wider public sector with up to 35 public sector organisations, including the police, fire services and the NHS, being asked to bid for funding from the £5 million scheme.
Winners will be offered a fully-funded fleet review to identify how to introduce greener vehicles.
Transport Minister Baroness Kramer said: "We want the public sector to lead by example. This £5 million investment will see a significant increase in the number of plug-in vehicles used by public bodies such as local authorities, police forces and the NHS and help both the environment and the economy. I look forward to seeing the results."
The £5m is in addition to £500m announced by the Deputy Prime Minister in April 2014, which includes:
- At least £200m to continue the plug-in car grant, which reduces the price of a new ULEV by up to £5,000.
- £100m for research and development.
- £35m cities scheme, to increase the uptake of ULEVs.
- £20m to encourage ultra-low emisison taxis.
- £30m to boost the low emission bus market.
- £32m for more chargepoints.
The Government is also backing the Go Ultra Low campaign to help fleets and general motorists understand the benefits, cost savings and capabilities of ultra-low emission vehicles.
Go Ultra Low is also supported by car manufacturers Audi, BMW, Mitsubishi, Nissan, Renault, Toyota, and Volkswagen.