- Govt Plug-In Van Grant extended
- Will run until at least 2027
- Get £2,500 off a small electric van
- Get £5,000 off a large electric van
- Get up to £25,000 off a large electric truck
- Grant levels for 2026/27 financial year still TBC
Businesses and sole traders looking to switch to electric vans or pick-ups can plan with more certainty after the UK government confirmed its Plug-in Van Grant will run until at least 2027.
The scheme currently offers up to £2,500 off the price of a small electric van (up to 2,500kg gross vehicle weight) and up to £5,000 off a large electric van (up to 4,250kg GVW). Electric trucks are also covered, with savings of up to £16,000 for small trucks and £25,000 for large trucks.
Grant levels for the 2026/27 financial year will be confirmed closer to the time and could be higher, lower, or remain the same as today.
The grant is part of a wider £650 million programme aimed at making electric vans and trucks more affordable, reducing CO₂ emissions from commercial transport, and supporting growth in the UK economy.
Commercial transport is responsible for more than a third of road transport CO₂ emissions, so helping businesses to switch to zero-emission vehicles is seen as key to meeting climate targets. The government says the extension will give fleet operators – from major logistics firms to one-van tradespeople – the confidence to plan future EV purchases.
According to industry figures, switching to electric could save a business more than £2,800 a year on fuel alone, with further savings possible through avoiding Ultra Low Emission Zone (ULEZ) and Clean Air Zone charges.
The extension follows a £30 million investment announced in July to install more than 3,000 new depot-based charge points across the UK. Public charging provision is also growing, with over 83,800 public charging points now available and more than 100,000 more planned via the £381 million Local EV Infrastructure fund.
Industry welcomes the move
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.”
John Boumphrey, UK country manager at Amazon, added: “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.”
Checkatrade CEO Jambu Palaniappan said: “This news is a big boost for tradespeople across the UK. Lower running costs, freedom from charges like ULEZ, and the ability to plan ahead with confidence – it all adds up to real, practical support.”
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