Businesses and drivers across the UK are set to benefit from lower costs after the government confirmed funding to support the adoption of electric vans and trucks.
The plug-in van and truck grant currently offers discounts of up to £2,500 for small vans, £5,000 for large vans, £16,000 for small trucks and £25,000 for large trucks. The grant is expected to continue through to at least 2027, with specific levels for the 2026–27 financial year yet to be confirmed.
Industry figures suggest switching to electric vehicles could save businesses more than £2,800 a year on fuel alone. The grants aim to help companies reduce costs, expand sustainable operations and strengthen supply chains.
The UK logistics sector, which employs 1.2 million people and generates over £79 billion annually, could see opportunities for growth, job creation, and investment as businesses transition to electric vehicles. Individual drivers may also benefit from the grant, making it more affordable to purchase an electric van.
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 more than a third of CO2 emissions on UK roads meaning it is crucial businesses are supported in make the transition to electric, building a cleaner future for businesses communities across the UK.”
The move follows additional government support for electric vehicles, including a £30 million investment in July to install more than 3,000 new depot charging points.
