- £18 million to slash up to £120,000 off the cost of
green lorries, making it cheaper for businesses to go
electric.
- Part of £318m green freight investment to cut costs
for industry and reduce emissions, delivering on the Government's
promise to boost growth and support jobs.
- Government launches consultation on roadmap to phase out
sales of new non-zero emission HGVs, giving industry certainty to
plan for zero emission by 2040.
Hauliers and fleet operators will access discounts
of up to £120,000 on new electric
trucks thanks to an additional £18
million announced by the Government today (Tuesday 6
January) to increase the Plug-in Truck
Grant until March 2026.
The move is part of a
£318 million plan for green freight which is
backing British businesses by slashing
upfront costs on new lorries and helping
businesses to access the lower running costs. This is all part of
the Government's plan to reduce emissions whilst cutting costs,
sparking growth and creating jobs as the sector moves to the
technology of the future.
Similar to the Government's Electric Car Grant, which
has saved over 45,000 drivers up to £3750 when making the switch,
the
Plug-in-Truck Grant enables lorry operators to access
savings of up to £120,000 when buying a new electric truck.
New grant levels mean:
- Smaller trucks (4.25t-12t) could save up
to £20,000
- Mid-sized trucks (12t-18t) up
to £60,000
- Larger trucks (18t-26t) up
to £80,000
- And the largest lorries (26t+) up
to £120,000
Minister for Aviation, Maritime and Decarbonisation,
said:
"We're backing British businesses to go green by making electric
lorries more affordable, helping hauliers to make the switch
whilst turbocharging growth, investment and jobs in the
sector.
“Our proposals will provide the certainty the industry has been
calling for so that Britain becomes the best place for green
investment.”
The funding is set to increase zero emission truck
sales to support delivery of UK's climate obligations
and comes as the Government has already
invested over £120m as part of the Zero Emission HGV
and Infrastructure Demonstrator (ZEHID) programme to rollout of
more zero emission lorries on UK roads.
Backed by this fund, companies like Amazon and Marks &
Spencer have already rolled out more electric delivery trucks on
UK roads, with ZEHID rolling out nearly 300 zero
emission HGVs by March 2026.
Day-to-day running costs can already be lower for electric
lorries compared to their diesel counterparts, but upfront
vehicle costs are
typically higher. Today's increase to the
Plug-in Truck Grant will help businesses access those daily
savings, cutting costs for business as well as
emissions.
John Boumphrey, UK Country Manager, Amazon
UK:
"Amazon welcomes the government's continued commitment to
supporting the electrification of commercial fleets. The UK will
be home to the largest number of electric heavy goods trucks in
Amazon's global transportation network and the first of our
record-breaking order of eHGVs are already on the road. We're
investing to help the UK decarbonise and meet our goal of being
net-zero carbon by 2040. We look forward to continuing to work
with the government to ensure the growth of more sustainable
logistics."
Alongside increased funding, the
Government will also launch a consultation on
the regulatory roadmap to phase out sales of
new non-zero emission HGVs by 2040, giving industry the
certainty it needs to invest and plan for the future.
By consulting closely with industry, the Government will ensure
the road to net zero is one that works for businesses and
supports jobs, growth and increased
investment.
NOTES TO EDITORS:
- The Plug-in Truck Grant and Plug-in Van Grant, are
confirmed to continue in financial year 2026/27.
Further details, including grant rates, will be published in
due course.
