U.K. extends electric van and truck grants to 2027

Published 18/08/2025, 08:50

Investing.com -- The United Kingdom government has extended the plug-in van and truck grant scheme to at least 2027, providing financial support for businesses switching to electric vehicles.

The current grant offers discounts of up to £2,500 for small vans, £5,000 for large vans, £16,000 for small trucks, and £25,000 for large trucks. Grant levels for the 2026 to 2027 financial year will be confirmed later.

Future of Roads Minister Lilian Greenwood announced the extension Monday, saying it represents "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."

According to industry figures, businesses could save more than £2,800 annually on fuel costs by switching to electric vehicles. The U.K. logistics sector, which employs 1.2 million people and generates over £79 billion annually for the economy, is expected to benefit from this transition.

The extension is part of the government’s £650 million scheme to make electric vehicles more affordable and boost economic growth under its Plan for Change.

Checkatrade CEO Jambu Palaniappan called the news "a big boost for tradespeople across the UK," citing lower running costs and freedom from charges like ULEZ as practical support for Checkatrade members.

Commercial transport accounts for more than a third of CO2 emissions on U.K. roads, making the transition to electric vehicles crucial for reducing emissions.

The grant extension follows a £30 million investment announced in July to install over 3,000 new chargepoints at depots across the U.K.

Currently, there are over 1.4 million electric vehicles on U.K. roads and more than 83,800 public charging points available, with over 100,000 more planned through the £381 million Local EV Infrastructure fund.

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