The UK Government has announced a £1 billion funding package to support the adoption of electric vans and trucks, aiming to reduce costs for businesses and accelerate the decarbonisation of road transport.
The funding will be distributed through two programmes: the Zero Emissions Truck and Van scheme and the Depot Charging Scheme. Together, they are designed to address key barriers to electrification, including high upfront vehicle costs and limited charging infrastructure.
Under the vehicle subsidy programme, businesses can receive grants covering up to 40% of the purchase price of electric trucks, with a maximum of £81,000 per vehicle for heavy-duty models. Electric vans will be eligible for subsidies of up to £5,000 per unit. The revised cap represents a reduction from previous support levels, where grants for trucks over 26 tonnes could reach £120,000.
At the same time, the government is expanding infrastructure support by increasing funding for the Depot Charging Scheme by £170 million. The programme enables companies and public sector organisations to cover up to 70% of installation costs for depot-based charging systems, with a funding cap of £1 million per application.
Keir Mather said the initiative is intended to support both economic growth and emissions reduction. “This £1 billion investment cuts cost for British businesses, supports jobs, cleans up our roads, and gives operators protection against shifting global fuel prices,” he said. He added that the logistics sector is “the backbone of the UK economy,” worth £170 billion and supporting 2.7 million jobs.
Industry representatives welcomed the announcement, highlighting its role in enabling fleet transitions.
Lee Holmes said: “Government investment gives businesses like Wren the confidence to accelerate fleet decarbonisation while maintaining operational stability, even in periods of economic uncertainty.”
Julian Bailey added: “We welcome this investment, which serves as a reminder of the importance of the logistics sector in the UK and its role in decarbonisation.”