Plug-in Truck Grant gets £18m boost

The UK Government has announced an extra £18 million in funding to help accelerate the roll-out of electric lorries.

The additional funding will allow fleet operators to access grants of up to £120,000 per vehicle as part of a broader £ 318m package of green freight investment.

The short-term boost will extend the Plug-in Truck Grant until March 2026 and has been announced at the same time as a consultation on a roadmap to phase out non-zero emission HGVs by 2040.

Like passenger cars and smaller vans, electric trucks can bring lower running costs for operators but come with a higher purchase price. The Government said that the additional funding would help address this and open up eHGVs to more businesses.

The grant offers a reduction of up to £20,000 for smaller trucks (4.25 tonnes to 12t); up to £60,000 on mid-sized trucks (12t to 18t); £80,000 on larger (18t to 26t) models and up to £120,000 on those weighing 26t or more.

Minister for Aviation, Maritime and Decarbonisation, Keir Mather, said: “We’re backing British businesses to go green by making electric lorries more affordable. Our proposals will provide the certainty the industry has been calling for so that Britain becomes the best place for green investment.”

The new grant funding has been welcomed but ChargeUK said that a longer-term funding programme was needed to ensure progress.

Jarrod Birch, head of policy and public affairs at the charging industry body, said: “The new grants are a welcome kick starter for the electrification of freight. However as with electrification of cars we need long-term, clear policy to encourage investment in both the vehicles and the charging infrastructure. So we hope to see this new funding continue beyond March and be matched with support for the rollout of the widespread and affordable charging infrastructure required for HGVs too.

Simon Smith, CEO of commercial vehicle charging specialist Voltempo, said that removing red tape was just as important as the additional funding.

He commented: “This announcement is a welcome step forward for the UK’s road freight sector, signalling further momentum behind the electrification of heavy goods vehicles.

“2026 is shaping up to be the year of the eHGV, and measures like the Plug-in-Truck Grant give more fleet operators the confidence to start investing. But incentives alone won’t deliver mass adoption. What really matters is whether electric trucks make commercial sense day-to-day.

“The challenge is total cost of ownership and operational reliability at scale. This is where public and private sectors must move together. Policy support remains crucial, but it must reflect the practical realities of commercial operations, including grid access, energy pricing, site security, and scalability. Progress will depend on close collaboration between government, industry and innovators.”