Plug-in van and truck grant extended until 2027
Buyers of electric vans and trucks will now receive discounts on their vehicles until 2027, despite being due to end in April...
The Government has extended its plug-in van and truck grant, which allows savings of up to £25,000 on new electric commercial vehicles, until 2027.
Currently the grant offers discounts of up to £2500 on small vans, £5000 on large vans, £16,000 on small trucks and £25,000 on large trucks. However, these could increase next year to accelerate uptake, with the Department for Transport stating that grant levels for the 2026/27 financial year will be confirmed in due course.
The grant, which was due to end in April 2026, was launched in 2012 for vans and 2016 for trucks in an attempt to curb the large emissions that come from combustion-engined commercial vehicles – which, according to the DfT, account for more than a third of CO2 emissions on UK roads.
In a release announced on Monday, the Government stated that the grant is extended until “at least” 2027, meaning it could be in place beyond that year. The decision aims not only to create opportunities for businesses, but also to benefit individual buyers by making electric vans cheaper to buy.
Under the current regulations for the grant, small vans must have a gross weight of less than 2500kg, have C02 emissions of less than 50g/km and be capable of travelling for at least 60 miles on electric power in order to qualify. Similarly, large vans must have a gross weight of between 2500-3500kg, have C02 emissions of less than 50g/km and be capable of travelling for at least 60 miles on electric power.
Small vans eligible for the grant include the Citroën ë-Berlingo and Renault Kangoo E-Tech, both of which we consider to be examples of the best electric vans on the market. Eligible large vans include the Mercedes eSprinter and Vauxhall Vivaro Electric.
This move forms part of the Government’s Plan for Change, which reserves £650 million of funding to accelerate EV uptake and improve charging infrastructure in the UK. That money also goes towards the Electric Car Grant, which introduces discounts of either £1500 or £3750 on new electric car sales, announced last month.
“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,” said Lilian Greenwood, Future of Roads Minister.
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