Government extends electric van and truck grants to 2027

The Government has confirmed it will extend financial support for electric vans and trucks through to at least 2027, giving thousands of businesses and fleet operators continued access to discounts of up to £25,000.

The Plug-in Van and Truck Grant currently offers 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 2026/27 will be announced in due course.

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.”

According to industry figures, switching to electric could save businesses more than £2,800 a year on fuel alone.

The Government said the extension would help companies cut costs, expand sustainable operations, and strengthen supply chains as part of its £650m Plan for Change.

The UK logistics sector, which employs 1.2 million people and generates more than £79bn annually, is expected to benefit from a smoother transition to electric vehicles, creating jobs and new business opportunities.

The move follows a £30m investment announced in July to fund more than 3,000 depot chargepoints, and builds on existing commitments to expand charging infrastructure.