Businesses, fleet operators and drivers across the UK will continue to benefit from government support for electric vehicles, after confirmation that the plug-in van and truck grant has been extended until at least 2027.
The scheme, part of a £650 million package designed to make electric vehicles more affordable, provides significant discounts of up to £2,500 for small vans, £5,000 for larger vans, £16,000 for small trucks and £25,000 for heavy trucks. Grant levels for the 2026–27 financial year will be announced in due course.
According to industry data, firms moving to electric vehicles can save more than £2,800 a year on fuel costs alone. The continuation of the grants offers businesses certainty as they plan for a greener future, while also supporting economic growth through the government’s Plan for Change.
The logistics sector, which employs 1.2 million people and contributes over £79 billion to the UK economy, is expected to see major benefits. Individual drivers can also take advantage, making it cheaper for tradespeople and small businesses to buy and run an electric van.
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.”
Commercial transport currently produces over a third of road-based CO2 emissions, underlining the importance of helping businesses make the switch to zero-emission vehicles.
The announcement builds on further government measures, including a £30 million investment confirmed in July to install over 3,000 new chargepoints at depots across the UK. With more than 1.4 million EVs already in use, 83,800 public charging points available, and more than 100,000 set to be delivered through the £381 million Local EV Infrastructure Fund, infrastructure support continues to grow.
In addition, the new Electric Car Grant is offering record discounts of up to £3,750, widening access to affordable EV ownership for families as well as businesses.