The government has announced a major financial incentive for hauliers to switch to electric by extending and increasing a grant that can slash up to £120,000 off the cost of a new zero-emission lorry.
An additional £18 million in funding for the Plug-in Truck Grant will run until March 2026. The grant provides tiered discounts based on vehicle size: up to £20,000 for smaller trucks, £60,000 for mid-sized models, £80,000 for larger trucks, and a maximum of £120,000 for the largest lorries (26 tonnes and above).
The move is part of a wider £318 million green freight investment aimed at cutting both industry costs and transport emissions. While electric lorries typically have higher upfront costs than diesel vehicles, their day-to-day running costs are often lower. The enhanced grant is designed to help businesses overcome the initial price barrier and access these long-term savings.
Minister for Aviation, Maritime and Decarbonisation, Keir Math 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.’
Alongside the funding boost, the government is launching a consultation on its roadmap to phase out sales of new non-zero emission heavy goods vehicles (HGVs) by 2040. This long-term policy signal is intended to give manufacturers and fleet operators the certainty needed to plan investments in green technology.
The grant extension builds on over £120 million already invested through the Zero Emission HGV and Infrastructure Demonstrator (ZEHID) programme, which has supported companies like Amazon and Marks & Spencer in rolling out nearly 300 zero-emission trucks on UK roads.
John Boumphrey, UK Country Manager, Amazon UK said: ‘Amazon welcomes the government’s continued commitment to supporting the electrification of commercial fleets. The UK will be home to the largest number of electric heavy goods trucks in Amazon’s global transportation network and the first of our record-breaking order of eHGVs are already on the road.
‘We’re investing to help the UK decarbonise and meet our goal of being net-zero carbon by 2040. We look forward to continuing to work with the government to ensure the growth of more sustainable logistics.’
Photo: Netze BW
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