The UK Government has announced the extension of critical financial incentives aimed at promoting the adoption of electric vans and trucks, with the objective of benefiting drivers and businesses nationwide.
The plug-in van and truck grant, which currently provides discounts of up to £5,000 for large vans, £2,500 for small vans, £25,000 for large trucks, and £16,000 for small trucks, will be maintained until at least 2027.
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Future grant levels for the 2026 to 2027 financial year will be determined later.
UK Future of Roads Minister Lilian Greenwood has assured the continuation of the grant, which is projected to enable businesses to save over £2,800 on fuel expenses annually, as per industry estimates.
The initiative is part of the government’s “Plan for Change”, aiming to reduce operational costs for companies, foster sustainable practices, and strengthen supply chains, consequently contributing to economic growth.
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.”
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By GlobalDataAccording to the government, the country’s logistics sector employs approximately 1.2 million individuals and contributes more than £79bn to the economy each year.
The sector is expected to experience a more seamless transition to electric vehicles (EVs), resulting in job creation and new business opportunities. This shift aligns with the nation’s ambitions focused on clean energy.
The grant not only supports businesses but also offers individual drivers the chance to purchase electric vans at a reduced cost.
Given that commercial transport accounts for over a third of the CO2 emissions on the country’s roads, the government’s support for the shift to EVs is a critical step towards a sustainable future for communities and businesses in the nation.
The extension of the grant provides certainty for fleet operators of all sizes, from large logistics companies to small independent businesses, enabling them to plan their EV purchases.
This move complements the government’s ongoing efforts to assist businesses in saving money and accessing the necessary charging infrastructure to embrace EVs.
Following a £30m investment in July 2025 for the installation of over 3,000 new chargepoints at depots across the nation, the commitment to electrification continues.
With the UK roads already home to more than 1.4 million EVs, the availability of over 83,800 public charging points, and an additional 100,000 expected through the £381m Local EV Infrastructure fund, the government is reinforcing its support for British businesses and households to adopt EVs.
This is further evidenced by the introduction of the Electric Car Grant (ECG), which offers up to £3,750 off the price of new EVs, and the recent launch of a £1,500 discount on approved EV models.
