Plug-In Van & Truck Grant Extended to 2027
The plug-in van and truck grant, which assures significant discounts towards the purchase of electric vans, has been extended to at least 2027.
The grant – which was first launched in 2012 – was due to conclude in 2026 but has been given a stay of execution for another year in an attempt to convince more businesses to adopt electric commercial vehicles.
Under the current measures, which remain unchanged until 2026, the plug-in van and truck grant offers discounts of up to £2,500 on small electric vans, £5,000 on large electric vans, £16,000 on small electric trucks and £25,000 on large electric trucks.
The grant levels for the extension period between 2026 and 2027 are yet to be confirmed.
Future of Roads Minister, Lilian 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.”
Electrifying the UK’s commercial vehicle network is seen as a significant catalyst towards the UK achieving net zero carbon emissions by 2030.
Currently, a third of CO2 emissions on UK roads are generated by commercial vehicles.
However, sales of EV vans have been sluggish with only six per cent of commercial vehicles sold over the past three years being electric.
This is due to rise to 8 per cent in 2025, but it remains well below the Zero Emissions Vehicle (ZEV) mandated target of 16 per cent.
It is hoped new measures announced in July that has pledged millions towards easing the path towards installing charging stations at fleet depots will encourage more businesses to adopt electric with their next purchases.
However, the Department for Transport also believes there is an impetus on individual businesses owners and tradespeople to go electric, claiming that it could save upwards of £2,800 on fuel bills alone annually.
