UK Government Extends Electric Van and Truck Grant Schemes Through 2027

Image Credit: Renault

The UK government has confirmed that businesses and fleet operators will continue to benefit from discounts on electric vans and trucks, as the Plug-in Grant Scheme has been extended until at least 2027. What remains uncertain, however, is the exact amount they will save in the years to come.

Currently, the scheme provides a range of financial support, including up to £2,500 for small vans, £5,000 for larger vans, £16,000 for small trucks, and £25,000 for heavy trucks. The Department for Transport has stated that grant levels for the 2026-2027 financial year will be announced at a later stage. Still, the government points out that businesses switching to electric vehicles could reduce annual fuel expenses by more than £2,800, which makes the case for adoption stronger.

“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 Future of Roads Minister Lilian 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.”

This plug-in grant scheme is part of a much larger £650 million programme aimed at reducing upfront purchase costs and accelerating the shift to zero-emission transport under the Plan for Change. Officials believe the extension provides logistics firms and smaller operators with greater certainty as they map out long-term fleet strategies. It also builds on the £30 million announced in July to fund over 3,000 new depot charging points nationwide. Additionally, the recently introduced Electric Car Grant offers up to £3,750 in subsidies for qualifying new electric vehicles.

Industry representatives welcomed the decision. John Boumphrey, UK Country Manager at Amazon, said: “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 added: “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. For many Checkatrade members, with help to switch to electric vans, they can keep moving, win more work, and build a future that’s both cost-effective and sustainable.”

The announcement comes against a backdrop of rising adoption. According to the Society of Motor Manufacturers and Traders, registrations of battery-electric vans increased by 72.6 per cent year-over-year in July. Even so, battery-electric vehicles accounted for just 8.8 per cent of total light commercial vehicle registrations so far this year. That is well below the 16 per cent required under the UK’s Zero Emission Vehicle mandate. By next year, the target is expected to rise to 26 percent; however, at the end of last month, the industry group projected that the figure would likely reach only around 13.7 percent.

In addition to support for fleet operators, the SMMT also called for the accelerated rollout of infrastructure to “drive progress and keep the UK at the forefront of road transport decarbonisation.”