The government is providing an additional £18 million to the plug-in van and truck grant scheme, which allows businesses to access discounts when purchasing new electric trucks.
The new funding means that the grant levels are now as follows:
- smaller trucks (4.25t to 12t): up to £20,000
- mid-sized trucks (12t to 18t): up to £60,000
- larger trucks (18t to 26t): up to £80,000
- largest lorries (26t and over): up to £120,000
Keir Mather, 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.”
The plug-in van and truck grant, which launched in 2012, is available until 31 March 2026. Vehicle dealership and manufacturers can apply for funding and then provide the grant to customers at the point of purchase. Full details are here.
Lamech Solomon, head of decarbonisation policy at business group Logistics UK, welcomed the announcement but said long term certainty is needed.
“With long procurement cycles, the sector needs certainty that these new rates will be maintained far beyond March 2026, so it has confidence to plan and invest,” he said.
“Our recently published report highlighted that over 60% of industry respondents believed the government had not provided adequate funding to support the decarbonisation of their fleets.”
Alongside the increased grant funding, the government said it will also launch a consultation on the regulatory roadmap to phase out sales of new non-zero emission HGVs by 2040.
Solomon added: “Commercial and operational viability will always be the main driver for logistics operators and alongside the cost of buying new vehicles, one of the main barriers they still face to fleet electrification is the lack of charging infrastructure: 85% of operators who responded to Logistics UK’s recent survey expressed low confidence in the availability of suitable public charging and more than 80% disagree they can install chargers with sufficient capacity at their operating sites.
“The logistics sector is committed to decarbonising but needs the government to provide sufficient support to make this transition a realistic possibility for industry.
“These are the factors that need to be considered during the consultation. The voice of industry must be heard and government should work with our sector to create a viable pathway to decarbonisation that includes all viable technology routes, ensuring the goods that businesses and consumers across the country rely on, continue to move smoothly through the UK supply chains.”