The UK Government is making electric lorries more affordable to help hauliers make the switch, while boosting growth and investment in the sector.
Hauliers and fleet operators will access discounts of up to £120,000 on new electric lorries thanks to an additional £18m to increase the Plug-in Truck Grant until March 2026.
The move is part of a £318m plan for green freight, which backs British businesses by slashing upfront costs on new lorries and helping them access lower running costs.
This is all part of the government’s plan to reduce emissions while cutting costs, sparking growth and creating jobs as the sector moves to the technology of the future.
How much will operators save on electric lorries?
Similar to the government’s Electric Car Grant, which has saved over 45,000 drivers up to £3,750 when making the switch, the Plug-in-Truck Grant enables lorry operators to access savings of up to £120,000 when buying a new electric truck.
New grant levels mean:
- Smaller trucks (4.25t to 12t) could save up to £20,000
- Mid-sized trucks (12t to 18t) up to £60,000
- Larger trucks (18t to 26t) up to £80,000
- The largest lorries (26t and over) up to £120,000
Supporting the UK’s climate ambitions
The funding is set to increase sales of electric trucks to support the UK’s climate obligations.
It also comes as the government has already invested over £120m as part of the zero-emission heavy goods vehicle (HGV) and infrastructure demonstrator (ZEHID) programme to roll out more zero-emission lorries on UK roads.
Minister for Aviation, Maritime and Decarbonisation, Keir Mather, stated: “We’re backing British businesses to go green by making electric lorries more affordable, helping hauliers to make the switch whilst turbocharging growth, investment and jobs in the sector.
“Our proposals will provide the certainty the industry has been calling for so that Britain becomes the best place for green investment.”
Businesses are rolling out more electric trucks
Backed by this fund, companies like Amazon and Marks & Spencer have already rolled out more electric lorries on UK roads, with ZEHID planning to roll out nearly 300 zero-emission HGVs by March 2026.
Day-to-day running costs can already be lower for electric lorries compared to their diesel counterparts, but upfront vehicle costs are typically higher.
The increase to the Plug-in Truck Grant will help businesses access those daily savings, cutting costs and emissions.
“The UK will be home to the largest number of electric heavy goods trucks in Amazon’s global transportation network, and the first of our record-breaking order of eHGVs are already on the road,” explained John Boumphrey, UK Country Manager at Amazon UK.
Phasing out heavy emissions trucks
Alongside increased funding, the government will also launch a consultation on the regulatory roadmap to phase out sales of new non-zero emission HGVs by 2040, giving industry the certainty it needs to invest and plan for the future.
By consulting closely with industry, the government will ensure the road to net zero is one that works for businesses and supports jobs, growth and increased investment.
