On 31st March 2025, the UK Government announced the extension of the Plug-in Van and Truck Grants for an additional year, reinforcing its commitment to promoting the adoption of zero-emission vehicles. This initiative aims to support businesses and drivers in transitioning to cleaner transportation options, thereby contributing to the nation’s environmental objectives.
Under the extended scheme, businesses and van drivers can benefit from grants of up to £2,500 when purchasing small vans up to 2.5 tonnes, and up to £5,000 for larger vans up to 4.25 tonnes. Since its inception, the Plug-in Van Grant has facilitated the sale of over 80,000 electric and zero-emission vans across the UK.
In addition to the financial incentives, the Government has removed the requirement for additional training that was previously necessary for operating zero-emission vans. This change addresses the fact that electric vans can be heavier than their petrol or diesel counterparts, despite being of similar size, thus simplifying the transition for businesses and drivers
The extension of the Plug-in Van and Truck Grants is part of a broader £2.3 billion package aimed at decarbonising road transport. This funding also includes support for zero-emission buses and other initiatives designed to reduce the UK’s carbon footprint.
Industry leaders have welcomed the announcement. Eurig Druce, Managing Director of Stellantis UK, stated, “The extension of the Plug-in Van Grant to 2026, and the removal of the unnecessary red tape around additional driving licence requirements for electric vans, is welcome news for UK businesses looking to take advantage of the environmental and cost benefits of electric vans.”
Logistics UK Deputy Director – Policy, Michelle Gardner says it will speed up decarbonisation by helping make the business case for investing in electric vehicles: “Cost is a significant barrier for businesses when investing in green technology, so extending the Plug-In Truck Grant will encourage HGV fleet decarbonisation by removing some of the risk.
“We have been calling for the grant to be extended for some time and our members will be encouraged that the government is taking industry’s views on board. Alongside affordable electric vehicles, the sector needs a comprehensive charging network, and we continue to urge the government to ensure the energy infrastructure is delivered at the pace the sector requires to maintain the nation’s supply chains while meeting net-zero goals.”
This initiative underscores the Government’s dedication to achieving net-zero emissions by 2050 and supports the broader goal of phasing out new petrol and diesel vehicles by 2030. By extending these grants, the Government aims to make the switch to electric vehicles more accessible and affordable for businesses and drivers nationwide.
Christopher Thorneycroft-Smith, Co-founder of Aegis Energy said: “As we had hoped, the UK Government has decided to extend the Plug-in Grant for electric trucks into the 2025/26 financial year. This is another step towards accelerating the switch to zero emission vehicles, making it as accessible and financially viable as possible for fleet operators.
However, alongside reducing upfront costs, it is also vital that we address the gap in reliable, accessible charging infrastructure for fleet operators. We look forward to continuing our engagement with the Government regarding how they can support the roll-out of HGV-dedicated charging that is essential to the UK’s drive to net zero.”
