Plug-in van grant extended to boost electric van sales

THE Government has extended the plug-in van grant until at least 2027 to support the uptake of electric vans.

The plug-in van and truck grant currently offers discounts up to £2,500 for small vans, £5,000 for large vans plus £16,000 for small trucks, and £25,000 for large trucks,

It comes amidst continued desultory growth in the eLCV arena, but the grant extension could give the eLCV market the boost it needs as signs of a pick up came through in July with a near 60% increase in electric LCVs, accounting for more than 9% of the market.

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.

“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.”

Future of Roads Minister Lilian Greenwood Tweet

She continued: “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.”

The grant extension is hoped to give 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.

The Government says that by switching to electric, businesses could save more than £2,800 annually on fuel alone according to industry figures. Individual drivers can also benefit from the grant, making it cheaper to buy an electric van.

“This news is a big boost for tradespeople across the UK,” said Checkatrade CEO Jambu Palaniappan. “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.”

Full details of the grant, including eligible vehicles are here.