The UK government has extended its plug-in grant scheme for electric vans and taxis by an additional year, with £120 million in funding allocated to support the transition to zero-emission vehicles. The subsidy program, originally set to expire in April 2025, will now continue until April 2026.
Under the scheme, businesses and individuals purchasing electric vans can receive up to £2,500 for models weighing up to 2.5 tonnes, while those buying vans of up to 4.25 tonnes are eligible for grants of up to £5,000. The program also offers grants of up to £4,000 for taxi drivers switching to electric vehicles and £500 for electric motorcycles. Additionally, the upper limit for plug-in wheelchair-accessible vehicle grants has been increased from £35,000 to £50,000.
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The government is also adjusting licensing requirements for heavier electric vans to match those of petrol and diesel equivalents. Currently, drivers require additional training to operate electric vans exceeding 3.5 tonnes, a rule not applied to their internal combustion counterparts. The revised regulation, subject to parliamentary approval, would allow drivers with a standard Category B licence to operate electric vehicles up to 4.25 tonnes without additional training. The rule would also apply to minibuses, SUVs, and other vehicles that would fall under the 3.5-tonne threshold if they were petrol- or diesel-powered.
“From van drivers and businesses to drivers with accessibility needs, bikers, and cabbies, today we are making it easier, faster, and cheaper for people to switch to electric vehicles,” said Future of Roads Minister Lilian Greenwood. “By making the transition to zero emissions a success, we’re helping to drive growth all over the UK, putting more money in people’s pockets and rebuilding Britain to deliver our plan for change.”
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The plug-in grant scheme, launched in 2012, has supported the sale of over 80,000 electric and zero-emission vans, according to the Department for Transport. However, the government has stated that the program will remain under review and may close before April 2026 if deemed no longer cost-effective. The UK plans to phase out new combustion engine vehicle sales by 2030.