In a groundbreaking decision in the UK’s green transport revolution, the government announced a significant extension of plug-in vans and truck grants.
Funds that provide important financial support to businesses and individuals switching to electric vehicles (EVs) are guaranteed to continue until at least 2027.
The move, confirmed today by future Road Minister Lillian Greenwood, aims to accelerate the adoption of zero-emission commercial vehicles, providing fleet operators with the stability they need to plan their investments for a cleaner and cost-effective future.
Greenwood said of the move: “Expanding these grants is another critical step to fostering the UK’s transition to clean transportation, while continuing to drive the economy, promoting new investments in EVs, and supporting industries that help businesses cut and expand costs.
“Every EV on our roads means healthier communities and new economic opportunities across the country. That’s why grants like this are important to accelerate that transition and build a resilient, competitive economy.”
Drive the cost of electric vans and trucks in UK companies
The economic benefits of powering electricity are substantial, and this grant makes the initial transition even more accessible.
Plug-in vans and truck grants offer substantial savings at the time of purchase, offering discounts of up to £2,500 for small vans, £5,000 for large vans, £16,000 for small vans, and £25,000 for large vans.
These incentives are powerful tools for businesses looking to modernize their fleets and at the same time improve revenue.
Switching to electricity beyond your initial purchase can lead to significant operational savings. Industry analysis shows that companies can save more than £2,800 a year on fuel alone. This is a number that provides strong incentives for sectors where margins are often tighter.
By reducing both prepaid and long-term operating costs, the grant directly supports key UK logistics sectors. The UK employs 1.2 million people and contributes more than £790 billion to the UK economy each year.
Industry reaction
Key industry figures welcome grant extensions and highlight its importance to increasing commercial EV adoption.
“We are pleased to announce that Mike Haws, CEO of the Association of Automotive Manufacturers and Traders (SMMT), said: “Expanding plug-in van and truck grants through 2027 will help increase zero emissions capture in the critical commercial vehicle sector.
“One of the main barriers to adoption is affordability, so this extension reduces the initial cost of purchasing, which will result in more operators switching along with accelerated infrastructure rollouts.
“The next step must be more affordable energy so that governments can maximize return on investment, both environmental and economic.”
Open the path to a cleaner future
The extension of plug-in van and truck grants is an important step in addressing the environmental impact of commercial transportation, which accounts for more than a third of CO2 emissions on UK roads.
By supporting UK businesses and families in the transition to EVS, the government is not only helping to achieve climate goals, but also creating new jobs and business opportunities.
This grant is just one component of a broader government strategy. This follows the recent £30 million investment announced in July, and will install more than 3,000 new charging points at the Business Depot, addressing key challenges for the commercial fleet.
With EVS already appearing over 1.4 million EVs and a rapidly expanding public charging network, UK charging infrastructure is matured to support this transition.
This comprehensive approach ensures that both financial incentives and the necessary infrastructure will be implemented, providing a clear pathway for businesses to adopt a cleaner, more resilient future.
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