The £5,000 electric car ‘green’ subsidy could be phased out, according to motoring groups, after the Government announced a review of the initiative.

There is concern that current pay-outs could be 'exhausting the budget too quickly'.

Experts believe the news could trigger a rush to buy plug-in electric cars over the coming weeks and months.

The grant was designed to increase uptake of greener car technologies – and given the 25,000+ claims made across the country so far, it has certainly had the desired effect.

The latest electric car grant eligibility information from the Government's 'Office for Low Emissions Vehicles' states: 'In May 2015 we will commence a review of plug in grant levels.

'Following this review, new levels of grant will be available per category. We will communicate the changes as soon as they are agreed.'

The guidance went on: ‘We will announce the new grant levels following our market review, which we will start in May.

'We will be observing the market over the next few months so we can set the grants at a level that will support the market as effectively as possible without exhausting the budget too quickly.'

For those buying an electric or ultra-low emissions vehicle during the 'transition period', the official guidance read: 'The date that the dealership enters the claim onto our online claim system determines whether the terms of the current scheme or the new scheme will apply.'

The Government has discussed ending the green car subsidy program before, most notably in September 2013. However, it was made clear that some form of subsidy would be in place until 2020.