Thousands of UK businesses and fleet operators will continue to benefit from government discounts on electric vans and trucks, after confirmation that the plug-in grant scheme will run until at least 2027.
The Department for Transport announced on 18 August 2025 that the grants – worth up to £25,000 per vehicle – will remain in place to support the uptake of low-emission commercial vehicles.
What support is available?
The plug-in grant scheme provides discounts at the point of purchase:
- Up to £2,500 for small vans
- Up to £5,000 for large vans
- Up to £16,000 for small trucks
- Up to £25,000 for large trucks
Exact funding levels for the 2026–27 financial year will be confirmed later, but the government has committed to keeping the programme in place until at least that point.
What it means for businesses
Commercial vehicles are responsible for more than a third of road transport CO₂ emissions. By extending the scheme, ministers aim to help businesses cut costs, reduce emissions, and plan with greater confidence as they transition their fleets.
Industry figures suggest businesses could save over £2,800 per year on fuel by switching to electric. The government also points to wider benefits, including reduced maintenance costs, exemption from low-emission zone charges, and improved air quality in urban areas.
The move is part of a wider £650 million programme to make electric vehicles more affordable, alongside recent investment in charging infrastructure. In July, £30 million was allocated to install more than 3,000 new depot charge points.
The bigger picture
There are now 1.4 million EVs on UK roads, supported by over 83,800 public charging points. A further 100,000 chargers are expected through the £381 million Local EV Infrastructure fund.
In addition to the van and truck scheme, a new Electric Car Grant was recently launched, offering discounts of up to £3,750 off new EVs.
Future of Roads Minister Lilian Greenwood said the grant extension was “another decisive step to power Britain’s transition to cleaner transport,” highlighting both the environmental benefits and the opportunity for business growth.
