The UK government has extended discounts on electric vans and trucks under the plug-in grant scheme until at least 2027. This announcement provides financial certainty for businesses and fleet operators investing in electric vehicles.
The grant currently offers reductions of up to 2,500 GBP for small vans, 5,000 GBP for large vans, 16,000 GBP for small trucks and 25,000 GBP for large trucks. Funding levels for the 2026–27 financial year will be confirmed at a later date.
The extension forms part of the 650 million GBP Plan for Change, which aims to reduce the cost of electric vehicles and support wider economic growth. According to industry figures, businesses making the switch could save more than 2,800 GBP each year on fuel.
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 logistics sector, which employs about 1.2 million people and contributes over 79 billion GBP annually to the UK economy, is expected to benefit from the scheme. Fleet operators, from large logistics firms to smaller companies, will gain more certainty when planning vehicle purchases.
The government has also pledged continued support for charging infrastructure. In July, 30 million GBP was announced for the installation of more than 3,000 new depot chargepoints. Alongside the van and truck scheme, a new electric car grant is offering discounts of up to 3,750 GBP for buyers.
