- government extends support to help drivers, businesses, fleets and cabbies make the switch to cleaner vehicles
- red tape blocking businesses from switching to zero emission vans to be cut
- part of £2.3 billion to help make a supported transition to zero emissions vehicles, creating jobs and delivering the Plan for Change
Drivers, cabbies and businesses are set to benefit from £120 million in government funding to make the switch to cleaner vans, wheelchair accessible vehicles and taxis easier, faster and cheaper.
Today (25 February 2025) Future of Roads Minister Lilian Greenwood confirmed that the department is extending the Plug-in van grant for another year, to help van drivers and businesses transition to zero emission vehicles.
The extension will mean businesses and van drivers can receive grants up to £2,500 when buying small vans up to 2.5 tonnes and up to £5,000 for larger vans up to 4.25 tonnes.
The Plug-in van grant has helped sell over 80,000 electric and zero emission vans since its launch, as the government continues to back businesses all over the country.
The department is also making it easier to switch to zero emission vans – which can be heavier than their petrol and diesel counterparts despite being of the same size – by removing the requirement for additional training that is currently in place only for zero emission vans but not their petrol and diesel equivalents.
This will help businesses by taking away training costs, cutting red tape and making it easier to hire drivers when operating electric vans.
Today’s funding is part of over £2.3 billion to help industry and consumers make a supported switch to electric vehicles (EVs). This is creating high paid jobs, supporting businesses up and down the country and tapping into a multi-billion pound industry to make the UK a clean energy superpower and deliver the government’s Plan for Change.
Future of Roads Minister, Lilian Greenwood, said:
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.
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.
The department is also supporting taxi drivers make the switch to electric for another year, by making £4,000 available to buy an iconic zero emission black cab amongst other models, making journeys cleaner and more comfortable for passengers.
The Plug-in wheelchair accessible vehicle grant cap is also being increased from £35,000 to £50,000, giving consumers a wider choice of vehicle models and removing barriers for disabled passengers, so that they can get around more easily and with greater peace of mind.
Today is a positive day for bikers as well, who will continue to enjoy a £500 grant from government to buy an electric motorbike for another year.
Alongside this financial support, the government strengthened incentives to purchase zero emission vehicles in the Autumn Budget 2024 by maintaining generous ZEV incentives in the Company Car Tax regime.
The transition to electric continues at pace. With over 382,000 electric cars sold in 2024 – up a fifth on the previous year – there’s never been a better time to switch to EVs, with one in 3 used electric cars under £20,000 and 21 brand new electric cars RRP under £30,000.
Owning an electric car is also becoming increasingly cheaper, with drivers able to save up to £750 a year if they mostly charge at home compared to petrol.
There are now over 74,000 public chargers in the UK, with a record of nearly 20,000 added last year alone. With 24/7 helplines, contactless payments, and up-to-date chargepoint locations, charging has become easier than ever.
With £200 million announced in the budget to continue powering the chargepoint rollout and £6 billion of private investment in the pipeline, the UK’s charging network will continue to see tens of thousands of chargers added in the coming years so that EV owners can drive with the confidence that they’re never too far from a socket.
Last year saw record numbers of people making a supported switch to electric vehicles, with the UK leading Europe in sales, and growth of more than a fifth on the previous year. The government has been engaging closely with car manufacturers on how to support them to deliver the transition to electric vehicles with a consultation recently closing, which sought views from industry on how to deliver the manifesto commitment to restore the 2030 phase out date for new purely petrol and diesel cars.
The average range of a new electric car is now 236 miles – that’s about 2 weeks of driving for most people – all the while emitting just one-third of the greenhouse emissions of a petrol car during its lifetime.
