UK extends grant for plug-in electric vans and trucks

The United Kingdom has confirmed it will extend the plug-in van and truck grant scheme which provides discounts to businesses and fleet operators when purchasing electric vans or trucks of all sizes.

The UK’s Future of Roads Minister Lilian Greenwood announced on Monday that the plug-in van and truck grant will continue through to at least 2027, though future grant levels for the 2026 and 2027 financial years are yet to be confirmed.

Currently, the discount offers up to £2,500 for small vans, £5,000 for large vans, £16,000 for small trucks, and £25,000 for large trucks.

The extension is part of the government’s £650 million scheme to lower the purchase price of electric vehicles (EVs). The grant is applied directly at the seller, meaning that it is included as a discount on the purchase price of the car.

“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,” said Greenwood.

“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 over a third of CO2 emissions on UK roads, which means that such government financial aid is crucial for supporting businesses as they make the transition to electric.

According to the UK government, switching to EVs can help save businesses more than £2,800 annually on fuel alone.

Unsurprisingly, the news of the grant’s extension was warmly welcomed by the countr’s electric vehicle industry.

“Extending the Plug-in Van and Truck Grant until 2027 will help increase zero emission uptake in the critical commercial vehicle sector, much of which faces the same end of sale date as the car market,” said Mike Hawes, CEO of the UK’s Society of Motor Manufacturers & Traders (SMMT).

“One of the major barriers to adoption is affordability so this extension will reduce the initial cost of purchase which, together with the accelerated rollout of infrastructure, will help more operators make the switch.

“The next step must be more affordable energy so government can maximise the return on investment for both the environment and the economy.”