Plug-In Truck Grant Boosted As Government Plans 2040 Diesel HGV Phase-Out

Government support for electric lorries has been increased after ministers confirmed a higher plug-in truck grant and announced plans to consult on a roadmap to end the sale of new diesel HGVs by 2040.

The Department for Transport has allocated an additional £18 million to raise plug-in truck grant levels over the next three months, with increased payments available across all weight categories. The move is intended to help fleet operators manage the higher upfront costs of switching from diesel to zero-emission trucks.

Under the revised scheme, operators buying smaller electric trucks between 4.25 and 12 tonnes can now receive up to £20,000, up from £16,000. Grants for mid-sized trucks from 12 to 18 tonnes rise to as much as £60,000, while vehicles between 18 and 26 tonnes can qualify for up to £80,000. The largest lorries, weighing 26 tonnes and over, are eligible for grants of up to £120,000.

Alongside the funding boost, the Government says it will launch a consultation on how to phase out the sale of new diesel heavy goods vehicles by 2040, giving manufacturers and operators longer-term clarity on the direction of travel for the sector.

Minister for Aviation, Maritime and Decarbonisation, Keir Mather, said: “We’re backing British businesses to go green by making electric lorries more affordable, helping hauliers to make the switch whilst turbocharging growth, investment and jobs in the sector. Our proposals will provide the certainty the industry has been calling for so that Britain becomes the best place for green investment.”

The Government has already committed more than £120 million through its zero-emission heavy goods vehicle and infrastructure demonstrator programme, which supports the rollout of zero-emission lorries and charging infrastructure across the UK.

The Road Haulage Association welcomed the additional grant funding, with Managing Director Richard Smith adding, “This plug-in grant extension is a welcome step that goes some way towards tackling one of the biggest barriers operators face on the road to net zero: upfront vehicle cost. Whilst welcome, to create a fully viable zero-emission heavy-duty vehicle market, this level of support must be sustained in future years and applied to HGVs, vans and coaches.”
 

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