- Thousands of businesses and fleet operators will continue to
receive crucial financial support after existing grant
scheme extended
- Move provides certainty for businesses to continue their
switch to electric, supporting their expansion and jobs across
the UK
- Forms part of Government's £650 million scheme to make it
cheaper to buy EVs and helping to boost growth as part of the
Plan for Change.
Thousands of drivers and businesses across the country are set to
benefit from lower prices as the Government has today (18 August)
confirmed vital funding to support the uptake of electric vans
and trucks.
The Plug-in Van and Truck Grant currently offers discounts up to
£2,500 for small vans, £5,000 for large vans, £16,000 for small
trucks, and £25,000 for large trucks, and the Future of Roads
Minister has confirmed the
grant will continue through to at least 2027. Grant levels
for the 2026/27 financial year will be confirmed in due
course.
By switching to electric, businesses could save more than £2,800
annually on fuel alone according to industry figures. This
support is helping companies cut costs, expand sustainable
operations, and build stronger supply chains, helping to drive
growth as part of the Government's Plan for Change.
The UK logistics sector – which employs 1.2 million people and
generates over £79 billion annually for the economy – will
benefit from this smoother transition, creating jobs and business
opportunities whilst helping keep the UK on track to becoming a
clean energy superpower.
Individual drivers can also benefit from the grant, making it
cheaper to buy an electric van and putting money back into their
pockets.
Future of Roads Minister 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.”
Commercial transport is responsible for more than a third of CO₂
emissions on UK roads meaning it is crucial businesses are
supported in make the transition to electric, building a cleaner
future for businesses communities across the UK.
The grant extension gives fleet operators, ranging from major
logistics firms to smaller independent businesses, the certainty
they need to confidently plan their electric vehicle purchases.
This builds on the Government's ongoing commitment to help
businesses save money and get the charging infrastructure they
need to make the switch to electric, after £30 million investment was
announced in July to install over 3,000 new chargepoints at
depots across the UK.
With over 1.4 million EVs already on UK roads, more than 83,800
public charging points available and over 100,000 more on the way
through the £381m Local EV Infrastructure fund alone – as well as
the new Electric Car
Grant offering record discounts of up to £3,750 off the
price of new EVs – the Government is backing British businesses
and families to go electric by reducing costs and in turn helping
to boost economic growth.
John Boumphrey, UK Country Manager at Amazon,
said:
“We welcome the government's continued commitment to supporting
the electrification of commercial fleets. Decarbonising the
transportation network is a critical step to enable us to achieve
our goal to reach net-zero carbon emissions across our operations
by 2040."
Checkatrade CEO Jambu Palaniappan:
“This news is a big boost for tradespeople across the UK. Lower
running costs, freedom from charges like ULEZ, and the ability to
plan ahead with confidence - it all adds up to real, practical
support. For many Checkatrade members, with help to switch to
electric vans, they can keep moving, win more work, and build a
future that's both cost-effective and
sustainable.”
