The Department for Transport and Office for Zero Emission Vehicles confirmed that the UK Plug-in Van and Truck Grant will continue until at least the 2027 financial year. Electric van and truck drivers can receive discounts of up to £25,000 under the extended program.
The grant has operated since 2012 and currently offers discounts of up to £2,500 for small vans and £5,000 for large vans.
Since 2016, the program expanded to include incentives of £16,000 towards small trucks and £25,000 towards large trucks. Government officials said they’ll announce next year’s rates soon.
Commercial transport accounts for a third of all road-based CO2 emissions. The government wants to reduce this figure by encouraging operators to switch to zero-emissions vehicles.
Government Backs Fleet Transition
Future of Roads Minister Lilian Greenwood emphasized the grant’s importance for Britain’s transport transition.
“Extending these grants is another decisive step to power Britain’s transition to cleaner transport while backing the industries that keep our economy moving, driving new investment in EVs and helping businesses cut costs and expand,” Greenwood said.
She added that every EV on the roads creates healthier communities and new economic opportunities across the country.
The grant’s available to anyone purchasing an electric van or truck – from sole operators to massive fleets.
Industry Leaders Welcome Extension
John Boumphrey, UK country manager at Amazon, praised the grant’s extension. Amazon’s moving to electric HGVs for its UK fleet operations.
“We welcome the government’s continued commitment to supporting the electrification of commercial fleets. Decarbonising the transportation network is a critical step to enable us to achieve our goal to reach net-zero carbon emissions across our operations by 2040,” Boumphrey said.
Checkatrade CEO Jambu Palaniappan called the news a big boost for tradespeople across the UK.
“Lower running costs, freedom from charges like ULEZ, and the ability to plan ahead with confidence – it all adds up to real, practical support,” Palaniappan said.
He noted that many Checkatrade members can keep moving, win more work, and build a cost-effective and sustainable future with help switching to electric vans.
The grant extension follows the government’s announcement of a £30m investment to support charger installation at fleet depots. This infrastructure funding complements the vehicle incentives by addressing charging capacity concerns for commercial operators.
