Plug-In Hybrid (PHEV) Vans No Longer Eligible for Plug-In Van Grant
Plug-in Hybrid Vans (PHEV) will no longer be eligible to receive the UK’s government’s Plug-In Van Grant following a reassessing of its criteria.
The PiVG has been in place for more than a decade and currently offers discounts of up to £5,000 towards the cost of a medium or large electric van, while savings of £2,500 can be had on small electric vans.
Though targeted at pure electric vans, the PiVG had permitted the inclusion of a small number of PHEV vans too.
These models combine a small battery with a conventional internal combustion engine to allow some electric-only driving for a much-reduced average emissions output.
However, following the decision to extend the PiVG by another year to run until at least 2027, the government has reviewed its criteria and omitted any vans fitted with an ICE, including PHEVs.
While the small number of PHEV vans on the market means the change’s impact is relatively limited, it does include the volume-selling Ford Transit Connect PHEV and Volkswagen eCaddy Hybrid, plus the LEVC VN5.
The Transit Connect PHEV and eCaddy Hybrid are based on the same platform and represent Ford and Volkswagen’s eco-friendly offerings in lieu of a pure electric version. The LEVC VN5, meanwhile, features a battery referred to as a 'range extender' in addition to an ICE.
The update is indicative of the government’s strategy to focus its support on the transition to zero emission, pure electric vans.
It comes as new figures released by SMMT revealed electric vans accounted for 9.4% of LCV registrations in 2025. Though a sizeable increase on previous years, it remained well below the government’s mandated target of 16% of all vans sold being electric.
For 2026, that target rises again to 24%, followed by 34% in 2027 and 46% in 2028. By 2030, the government wants 70% of all new van sales to be electric.
What is eligible for the Plug-in Van Grant (PiVG)?
Both small and large vans are eligible for the grant. To qualify, they must meet the government’s set out criteria.
To qualify for the PiVG, a small electric van (under 2.5 tonnes) must:
- Have a gross weight vehicle weight under 2,500kg.
- Produce less than 50g/km of CO2 emissions.
- Be able to travel at least 60 miles emission-free.
- To qualify for the PiVG, the large van must:
- Have a gross vehicle weight of 2,500kg – 4,250kg.
- Omit fewer than 50g/km of CO2 emissions.
- Be able to travel at least 60 miles with no emissions.
How to apply for the Plug-in Van Grant (PiVG)
There’s no need to apply for the grant. If your chosen small or large van is eligible, the grant is available when you buy or lease your electric van.
Electric vans at Vansdirect
At Vansdirect, we can help you electrify your business. Our wide range of electric vans includes small and large vans. We also sell many of the vans eligible for the Plug-in Van Grant. With our competitive pricing and van finance offers, we can help you find a great electric van deal. Finance options include van leasing, Contract Hire, Hire Purchase, and van fleet leasing. Contact us today and start your electric van journey with us.
Find this electric van article interesting?
Check out our Electric Van Hub where you'll find even more useful information such as the benefits of electric vans and electric van reviews.
