Government grant for electric vans and trucks extended

Are you a business or a fleet operator switching to electric? The good news is that the plug-in van and truck grant is being extended until at least 2027.

What is the grant?

Some types of low-emission vehicles are eligible for a grant from the government, so they can be bought more cheaply. Vehicle dealerships or manufacturers can apply for a grant allowing electric vans and trucks to be sold at a discount, with certain models being sold with up to 35% off. The seller includes the discount in the purchase price.

The grant currently offers discounts of up to £2,500 for small vans, £5,000 for large vans, £16,000 for small trucks, and £25,000 for large trucks. Grant levels for the 2026 to 2027 financial year will be confirmed soon.   

What are the benefits?

Well, apart from the obvious purchase cost savings, businesses could also save more than £2,800 annually on fuel alone by switching to electric. That’s according to industry figures, quoted by the government. Individual drivers can also benefit from the grant, making it cheaper to buy an electric van.

Grant support can help companies expand their sustainable operations, create jobs, build stronger supply chains, and it provides some certainty for businesses to continue their switch to electric.

How can switching to electric help you?

Here’s what Future of Roads Minister Lilian Greenwood had to say today (August 18^th, 2025):

“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 more than a third of CO2 emissions on UK roads meaning it is crucial businesses are supported in making the transition to electric, building a cleaner future for businesses and communities across the UK.  

The grant extension gives fleet operators, ranging from major logistics firms to smaller independent businesses, the certainty they need to confidently plan their electric vehicle purchases.

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”.

Other Reaction

Our Head of EV Charging, Graeme Patton, commented:

“With over 1.4 million EVs on UK roads already, and almost 84,000 public charge points plus many thousands more on the way, this is another positive step in the transition to electrify transport. We welcome all measures that make it even more attractive for businesses, fleets and individuals to switch to electric”.

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”.

Further information

For more information, head here:

https://www.gov.uk/plug-in-vehicle-grants/vans