British hauliers are set to benefit from sharply reduced costs for electric lorries after the government announced a further £18 million to extend the Plug-in Truck Grant
until March 2026.
The funding will allow fleet operators to claim discounts of up to £120,000 on new electric heavy goods vehicles (HGVs), lowering the upfront costs that have long been a barrier to switching away from diesel. The announcement, made on 6 January 2026, forms part of a wider £318 million green freight package aimed at cutting emissions while supporting growth, jobs and investment across the logistics sector.
Under the updated grant scheme, savings will vary by vehicle size. Smaller trucks weighing between 4.25 and 12 tonnes can receive up to £20,000, while mid-sized vehicles of 12 to 18 tonnes qualify for up to £60,000. Larger trucks between 18 and 26 tonnes can claim up to £80,000, rising to a maximum of £120,000 for the heaviest lorries of 26 tonnes and above.
The scheme mirrors the government’s Electric Car Grant, which has already helped more than 45,000 motorists save up to £3,750 on electric vehicles. Officials say the Plug-in Truck Grant will deliver similar momentum for the haulage industry by helping businesses access lower day-to-day running costs offered by electric vehicles.
Minister for Aviation, Maritime and Decarbonisation, Keir Mather, 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 latest funding builds on more than £120 million already committed through the zero emission heavy goods vehicle and infrastructure demonstrator (ZEHID) programme, which is supporting the rollout of electric HGVs and charging infrastructure across the UK. Nearly 300 zero-emission lorries are expected to be on the road by March 2026 through the scheme, with companies including Amazon and Marks & Spencer among early adopters.
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 the funding boost, the government will launch a consultation on a regulatory roadmap to phase out sales of new non-zero emission HGVs by 2040. Ministers say the consultation will be closely aligned with industry to ensure the transition supports businesses, jobs and long-term investment while putting the freight sector on a clear path to net zero.