Expanded incentives offered by the government for electric-powered vehicles, such as vans and trucks, will continue.
UK Government Extends Plug-in Van and Truck Grant to Support Electric Fleet Adoption
The UK government has announced an extension of the Plug-in Van and Truck Grant scheme, which will continue until at least April 2027 as part of its £650 million Plan for Change to promote the adoption of zero-emission vehicles across commercial fleets [1][2][5].
The current grant levels offer substantial discounts for electric vehicles, with up to £2,500 for small vans (under 2.5 tonnes), £5,000 for large vans (2.5 to 4.25 tonnes), £16,000 for small trucks (4.25 to 12 tonnes), and £25,000 for large trucks [1]. Although the exact grant amounts for the 2026/27 financial year are yet to be confirmed, the extension provides certainty for fleet operators, including major logistics firms and smaller independent businesses, to confidently plan electric vehicle purchases.
The Plug-in Van and Truck Grant aims to help businesses reduce initial vehicle purchase costs and ongoing operational expenses. For instance, by switching to electric, businesses could save more than £2,800 annually on fuel alone [1]. The grant scheme, combined with the accelerated rollout of charging infrastructure (including over 3,000 new depot chargepoints funded by a £30 million investment), is intended to improve the affordability and feasibility of fleet electrification.
The extension and funding of the grant scheme are expected to support the transition to electric vehicles in the logistics sector, aiding sustainable operations and job growth. This is crucial for overcoming barriers such as vehicle affordability and infrastructure availability, which are essential for wider EV adoption in commercial transport. As regulatory measures like expanded low-emission zones push fleet operators towards greener vehicles, the Plug-in Van and Truck Grant provides real, practical support for tradespeople, enabling them to switch to electric vans, keep moving, win more work, and build a sustainable future [1].
Industry leaders welcome the government's continued commitment to supporting the electrification of commercial fleets. John Boumphrey, Country Manager at Amazon, has expressed his appreciation for the government's efforts, while Checkatrade Jambu Palaniappan believes the news provides valuable support for tradespeople [1]. The government's ongoing efforts are aimed at reducing costs for British businesses and families, helping them transition to electric vehicles, and boosting economic growth.
With over 1.4 million electric vehicles already on the roads, the Plug-in Van and Truck Grant's extended timeline to 2027 and the scaled grant levels provide significant financial backing to accelerate the shift to electric commercial vehicles. This move is expected to help decarbonize the UK’s logistics sector, contribute to cleaner air quality, and support economic growth under the Plan for Change.
[1] GOV.UK. (2023, March 20). Plug-in Van and Truck Grant: Overview. Retrieved from https://www.gov.uk/government/publications/plug-in-vehicle-grant-overview
[2] GOV.UK. (2023, March 20). Plug-in Van Grant: Eligibility, rates, and application. Retrieved from https://www.gov.uk/government/publications/plug-in-van-grant-eligibility-rates-and-application
[3] GOV.UK. (2023, March 20). Plug-in Truck Grant: Eligibility, rates, and application. Retrieved from https://www.gov.uk/government/publications/plug-in-truck-grant-eligibility-rates-and-application
[4] Department for Transport. (2022, October 13). Low Emission Zones. Retrieved from https://www.gov.uk/guidance/low-emission-zones
[5] GOV.UK. (2023, March 20). Plan for Change: A 10-point plan for a green industrial revolution. Retrieved from https://www.gov.uk/government/publications/plan-for-change-a-10-point-plan-for-a-green-industrial-revolution
The UK government's extension of the Plug-in Van and Truck Grant scheme provides certainty for businesses, such as logistics firms and independent businesses, to confidently plan electric vehicle purchases for sports operations, as the grant aims to help reduce initial vehicle purchase costs and ongoing operational expenses.
By switching to electric vans, tradespeople could potentially save more than £2,800 annually on fuel alone, which could significantly benefit sports teams or organizations with fleet vehicles for transportation.
