Businesses across the UK will continue to benefit from lower costs when switching to cleaner vehicles after the government confirmed that grants for electric vans and trucks will be extended until at least 2027.
The plug-in van and truck grant, which forms part of the government’s £650 million scheme to accelerate the shift to zero-emission vehicles, currently offers up to £2,500 off the price of a small van, £5,000 off a large van, £16,000 off a small truck and £25,000 off a large truck.
The continuation of the scheme, announced yesterday by Future of Roads Minister Lilian Greenwood, provides long-term certainty for fleet operators and small businesses alike. Grant levels for the 2026–27 financial year will be confirmed soon.
According to industry estimates, switching to an electric van could save businesses more than £2,800 a year in fuel costs alone. The government argues that these savings, coupled with upfront discounts, will help companies expand sustainable operations, cut carbon emissions and strengthen UK supply chains.
Commercial transport accounts for over a third of road transport CO₂ emissions, making it a priority for decarbonisation. The UK logistics sector, which employs 1.2 million people and contributes £79 billion annually to the economy, is expected to benefit significantly from the smoother transition.
The extension builds on recent investment, including £30 million announced in July for more than 3,000 new chargepoints at depots across the country. With 1.4 million EVs already on UK roads, over 83,800 public chargepoints in place, and more than 100,000 additional units in the pipeline, ministers say the UK is on track to becoming a “clean energy superpower.”
By maintaining support for businesses and individual drivers, the government hopes to accelerate uptake, reduce emissions, and boost growth as part of its wider Plan for Change.
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.’
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: ‘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.’
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