Government extends plug-in grants to at least 2027

The UK government has extended discounts for electric vans and trucks to at least 2027, providing continued support for businesses shifting fleets to zero-emission vehicles, the Department for Transport announced on Monday in London.

The plug-in grant 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. Ministers said the extension would give companies certainty to plan purchases and help lower operating costs across logistics and trades.

The scheme forms part of a broader £650 million package designed to make electric vehicles cheaper to buy and to underpin growth in UK supply chains. The department said switching to electric could save businesses more than £2,800 annually on fuel alone, citing industry figures. With the logistics sector employing about 1.2 million people and contributing more than £79 billion to the economy, the government argues that smoother fleet electrification can support jobs while advancing climate goals.

Future of Roads Minister Lilian Greenwood said the decision was intended to “power Britain’s transition to cleaner transport while backing the industries that keep our economy moving,” adding that every additional EV on the road brings “new economic opportunities across the country.” The department noted complementary infrastructure funding, including a July commitment of £30 million to install more than 3,000 charge points at depots nationwide and the Local EV Infrastructure fund that aims to deliver over 100,000 public chargers.

Officials also flagged the recently launched Electric Car Grant for private motorists, which offers discounts of up to £3,750 on selected models, positioning the van and truck grant extension as part of a coordinated set of incentives. Business groups and fleet operators welcomed the move. Amazon’s UK country manager said in a government statement that continuing support for commercial fleet electrification is “critical” to the company’s net zero plans for 2040. Checkatrade’s chief executive said the policy gives tradespeople the confidence to plan ahead and reduce running costs.

The department will confirm specific grant levels for the 2026 to 2027 financial year in due course. The announcement comes as manufacturers and logistics companies weigh vehicle supply, charging downtime and total cost of ownership when replacing diesel models. The government’s position is that longer-term certainty on incentives will help sustain demand and crowd in private investment into charging infrastructure and fleet services.