The UK government has confirmed that discounts on electric vans and trucks will remain available to businesses and fleet operators until at least 2027, extending the plug-in grant scheme first launched in 2012. While grant levels for the 2026–2027 financial year have yet to be set, the Department for Transport said the programme will continue to provide cost support for companies transitioning to zero-emission vehicles.
The scheme 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. According to the government, switching to electric vehicles could save businesses more than £2,800 a year in fuel costs. The programme forms part of a £650 million “Plan for Change,” which also includes a new electric car grant worth up to £3,750 and recent funding of £30 million for 3,000 additional depot charging points across the country.
“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,” said Future of Roads Minister Lilian Greenwood.
Since its introduction, the plug-in van grant has helped facilitate the sale of more than 80,000 electric and zero-emission vans, according to the Department for Transport. It was previously extended in October 2022 and February 2025. The UK is aiming to phase out new combustion-engine vehicles by 2030.
Industry representatives welcomed the government’s decision. John Boumphrey, UK Country Manager at Amazon, said: “We welcome the government’s continued commitment to supporting the electrification of commercial fleets. Decarbonising the transportation network is a critical step to enable us to achieve our goal to reach net-zero carbon emissions across our operations by 2040.”
Checkatrade CEO Jambu Palaniappan described the extension as “a big boost for tradespeople across the UK,” citing lower running costs and greater planning certainty for small business owners.
The announcement comes amid growing demand for battery-electric vans, which saw registrations rise 72.6% year-on-year in July, according to the Society of Motor Manufacturers and Traders (SMMT). Despite this growth, electric vans accounted for just 8.8% of total registrations so far in 2025, below the 16% required by the UK’s zero-emission vehicle mandate. The SMMT has forecast that share to reach only 13.7% by the end of the year, compared with the government’s 26% target for 2026.
The industry body also urged the government to accelerate charging infrastructure deployment to “drive progress and keep the UK at the forefront of road transport decarbonisation.”