Businesses and drivers across the UK will continue to get valuable financial support when switching to electric vans and trucks, after the government confirmed that its ‘plug-in van and truck
grant’ will be extended until at least 2027.
The scheme, which forms part of the government’s £650 million plan to cut the cost of electric vehicles, offers big savings:
- Up to £2,500 off small vans
- Up to £5,000 off large vans
- Up to £16,000 off small trucks
- Up to £25,000 off large trucks
Future of Roads Minister Lilian Greenwood said that grant levels for 2026–27 will be announced later, but the extension gives businesses and fleet operators the certainty they need to keep investing in electric vehicles.
Lower costs, bigger savings
Industry figures suggest businesses could save over £2,800 a year on fuel by switching to electric. That means lower running costs, more money for growth, and a stronger push towards cleaner supply chains.
The logistics sector alone employs 1.2 million people and adds more than £79 billion a year to the UK economy. Supporting its shift to electric will not only cut emissions but also open up new jobs and opportunities, while strengthening the UK’s position as a clean energy leader.
Benefits for drivers and communities
It’s not just large businesses that benefit—individual drivers looking to buy an electric van can also use the grant, helping to put money back in their pockets.
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".
Commercial transport is responsible for over a third of road CO2 emissions, making this transition critical for both businesses and local communities.
Charging ahead
The grant extension comes alongside wider government investment in charging infrastructure. In July, £30 million was announced to install more than 3,000 new depot chargepoints for fleets.
With more than 1.4 million electric vehicles already on UK roads, 83,800+ public charging points available, and over 100,000 more on the way through the £381 million Local EV Infrastructure fund, the UK is steadily building the network businesses and families need to go electric.
The extension also complements the new Electric Car Grant, which gives up to £3,750 off new EVs, making it cheaper than ever for drivers to make the switch.
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". Photo by Peter J Dunn - on behalf of the University of Warwick, Wikimedia commons.