The UK government has announced a major £1 billion funding package aimed at helping businesses transition to electric vans and trucks, reduce operating costs, and strengthen resilience

against volatile fuel prices.

At the heart of the initiative are the Zero Emissions Truck and Van Grants alongside the enhanced Depot Charging Scheme (DCS), both designed to tackle two key barriers facing companies: the high upfront cost of electric vehicles and limited access to charging infrastructure.

Under the scheme, businesses can receive significant financial support when switching to zero-emission fleets. Discounts of up to £81,000 are available for the heaviest electric trucks—covering as much as 40% of their cost—while companies purchasing electric vans can save up to £5,000 per vehicle.

In addition, organisations installing charging infrastructure for vans, coaches, and electric heavy goods vehicles (eHGVs) can access funding of up to £1 million, covering as much as 70% of installation costs. This is backed by a £170 million expansion of the Depot Charging Scheme.

The move comes at a time when global fuel price instability continues to put pressure on businesses. By accelerating the shift to electric transport, the government aims to shield operators from fluctuating fuel costs while cutting emissions and supporting long-term growth.

Keir Mather described the investment as a “critical step” in supporting British industry. He emphasized that the funding would reduce costs, support jobs, and help clean up the nation’s roads, while strengthening the logistics sector—an industry worth £170 billion and employing 2.7 million people.

Major companies are already taking advantage of government support. Wren Kitchens & Bedrooms has begun integrating 44-tonne electric trucks into its fleet, supported by rapid charging infrastructure. According to Transport and Logistics Director Lee Holmes, the funding provides confidence to accelerate fleet decarbonisation while maintaining operational stability during uncertain economic conditions.

Similarly, Marks & Spencer continues to expand its electric vehicle fleet as part of its broader net-zero strategy. Julian Bailey noted that the investment reinforces the importance of logistics in achieving decarbonisation goals, highlighting the retailer’s progress since committing to net zero by 2040.

The announcement builds on earlier government measures, including an £18 million boost introduced in January to further reduce the cost of green lorries. Beyond commercial fleets, the government is also supporting consumers through the Electric Car Grant, which has already helped more than 80,000 drivers switch to electric vehicles, saving up to £3,750 each.

With electric vehicles now accounting for one in four new car sales in the UK, expanding charging infrastructure remains a priority. The government has committed over £600 million to roll out hundreds of thousands of additional charging points nationwide, adding to the existing network of more than 118,000 chargers.

Industry leaders have welcomed the move. Toby Poston of the British Vehicle Rental and Leasing Association highlighted the importance of depot charging in enabling fleet operators—particularly small and medium-sized businesses—to electrify at scale. He said the additional funding would boost confidence across the sector and accelerate progress toward the UK’s net-zero targets.