- thousands of businesses and fleet operators will continue to receive crucial financial support after existing grant scheme extended
- move provides certainty for businesses to continue their switch to electric, supporting their expansion and jobs across the UK
- forms part of government’s £650 million scheme to make it cheaper to buy EVs and helping to boost growth as part of the Plan for Change.
Thousands of drivers and businesses across the country are set to benefit from lower prices as the government has today (18 August 2025) confirmed vital funding to support the uptake of electric vans and trucks.
The plug-in van and truck grant currently offers discounts up to £2,500 for small vans, £5,000 for large vans, £16,000 for small trucks, and £25,000 for large trucks, and the Future of Roads Minister Lilian Greenwood has confirmed the grant will continue through to at least 2027. Grant levels for the 2026 to 2027 financial year will be confirmed in due course.
By switching to electric, businesses could save more than £2,800 annually on fuel alone according to industry figures. This support is helping companies cut costs, expand sustainable operations, and build stronger supply chains, helping to drive growth as part of the government’s Plan for Change.
The UK logistics sector – which employs 1.2 million people and generates over £79 billion annually for the economy – will benefit from this smoother transition, creating jobs and business opportunities whilst helping keep the UK on track to becoming a clean energy superpower.
Individual drivers can also benefit from the grant, making it cheaper to buy an electric van and putting money back into their pockets.
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 is responsible for more than a third of CO2 emissions on UK roads meaning it is crucial businesses are supported in make the transition to electric, building a cleaner future for businesses communities across the UK.
The grant extension gives fleet operators, ranging from major logistics firms to smaller independent businesses, the certainty they need to confidently plan their electric vehicle purchases. This builds on the government’s ongoing commitment to help businesses save money and get the charging infrastructure they need to make the switch to electric, after £30 million investment was announced in July to install over 3,000 new chargepoints at depots across the UK.
With over 1.4 million EVs already on UK roads, more than 83,800 public charging points available and over 100,000 more on the way through the £381 million Local EV Infrastructure fund alone – as well as the new Electric Car Grant offering record discounts of up to £3,750 off the price of new EVs – the government is backing British businesses and families to go electric by reducing costs and in turn helping to boost economic growth.
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:
This news is a big boost for tradespeople across the UK. Lower running costs, freedom from charges like ULEZ, and the ability to plan ahead with confidence – it all adds up to real, practical support. For many Checkatrade members, with help to switch to electric vans, they can keep moving, win more work, and build a future that’s both cost-effective and sustainable.
