- After previously being set to expire in March 2026, the UK government has extended the Plug-in Van and Truck Grant until ‘at least’ 2027, allowing the opportunity for more businesses and fleets to make the switch to fully-electric forms of commercial transport.
- The grant currently offers discounts of up to £2,500 for electric vans, £5,000 for large electric vans, £16,000 for small electric trucks, and £25,000 for large electric trucks, with the level of discounts offered within the upcoming extension to be revealed in due course.
- This extension forms part of the government’s £650 million fund to reduce the price of EVs and and boost uptake, such as the recently-introduced Electric Car Grant.
UK government looks to drive adoption of electric vans and trucks further
Commercial transport is currently responsible for around one third of UK road-related emissions, indicating the environmental and health benefits set to be gained from encouraging a widespread switch to EVs in this sector.
The UK has already seen strong electric van adoption in recent months, helped along by both the existing Plug-in Van Grant, and the implementation of clean air zones across the UK which are helping to further lower the cost of ownership of electric vans compared to their diesel-powered counterparts. Despite this, electric vans as a proportion of total van sales still remain low, accounting for around 10.3% of sub-4.25 tonne vans sold last month, according to the SMMT. The extension of the grant into 2027 could help address this, and help maintain the impressive year-on-year rises in sales.
This grant extension also neatly complements the government’s newly-announced depot charging scheme, which will fund up to 75% of charge point and civil costs for depot-based infrastructure, helping to further support businesses make the switch to electric trucks, vans, and buses.
Future of Roads Minister, Lilian Greenwood, commented:
“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.”
John Boumphrey, UK Country Manager at Amazon, reacted:
“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.”
