In a landmark decision for the UK’s green transport revolution, the government has announced a significant extension of the plug-in van and truck grant.
The funding, which provides crucial financial support for businesses and individuals making the switch to electric vehicles (EVs), is now guaranteed to continue until at least 2027.
This move, confirmed today by Future of Roads Minister Lilian Greenwood, aims to accelerate the adoption of zero-emission commercial vehicles and provides fleet operators with the stability they need to plan their investments for a cleaner, more cost-effective future.
Commenting on the move, Greenwood said: “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.
“Every EV on our roads means healthier communities and new economic opportunities across the country, which is why grants like these are crucial to both accelerating that transition and building a resilient, competitive economy.”
Driving down electric van and truck costs for UK businesses
The financial benefits of going electric are substantial, and this grant makes the initial transition even more accessible.
The plug-in van and truck grant offers considerable savings at the point of purchase, with discounts of up to £2,500 for small vans, £5,000 for large vans, £16,000 for small trucks, and £25,000 for large trucks.
These incentives are a powerful tool for companies looking to modernise their fleets while simultaneously improving their bottom line.
Beyond the initial purchase, switching to electric can lead to significant operational savings. Industry analysis indicates that businesses could save over £2,800 annually on fuel alone, a figure that provides a powerful incentive for a sector where margins are often tight.
By reducing both upfront costs and long-term running expenses, the grant directly supports the UK’s vital logistics sector, which employs 1.2 million people and contributes over £79bn to the UK’s economy each year.
Industry reaction
Leading industry figures have welcomed the grant’s extension, emphasising its significance for increasing commercial EV adoption.
Mike Hawes, Chief Executive of the Society of Motor Manufacturers and Traders (SMMT), said: “Extending the Plug-in Van and Truck Grant until 2027 will help increase zero emission uptake in the critical commercial vehicle sector, much of which faces the same end of sale date as the car market.
“One of the major barriers to adoption is affordability, so this extension will reduce the initial cost of purchase, which, together with the accelerated rollout of infrastructure, will help more operators make the switch.
“The next step must be more affordable energy so the government can maximise the return on investment for both the environment and the economy.”
Paving the way for a cleaner future
The extension of the plug-in van and truck grant is a critical step in addressing the environmental impact of commercial transport, which accounts for more than a third of CO2 emissions on UK roads.
By backing British businesses and families in their transition to EVs, the government is not only helping to achieve its climate goals but is also creating new jobs and business opportunities.
This grant is just one component of a wider government strategy. It follows a recent £30m investment announced in July to install over 3,000 new chargepoints at business depots, addressing a key challenge for commercial fleets.
With over 1.4 million EVs already on the road and a rapidly expanding public charging network, the UK’s charging infrastructure is maturing to support this transition.
This comprehensive approach ensures that both the financial incentives and the necessary infrastructure are in place, providing a clear path for businesses to embrace a cleaner, more resilient future.
