UK Plug-in Van and Truck Grant extended until 2027

Electric van and truck drivers will be able to receive discounts of up to £25,000 for another year after the UK Plug-in Van and Truck Grant was extended.

The Department for Transport and Office for Zero Emission Vehicles have confirmed that the incentive will run until at least 2027 financial year.

The grant, which has been in place since 2012, currently offers discounts of up to £2,500 for small vans and £5,000 for large vans. Since 2016 it has also offered incentives of £16,000 towards small trucks and £25,000 towards large trucks. The government said that next year’s rates will be confirmed shortly.

Commercial transport is responsible for a third of all road-based CO2 emissions and the government is keen to slash this by encouraging operators to switch to zero-emissions vehicles.

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.

“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.”

The grant is available to anyone purchasing an electric van or truck, from sole operators up to massive fleets.

John Boumphrey, UK country manager at Amazon, praised its extension. He 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 extension comes after the government announced a £30m investment to support charger installation at fleet depots.