The UK government has pledged an additional £18 million to make green lorries more affordable for business, allocating up to £120,000 off each purchase of an electric truck.
Announced on 6 January, hauliers and fleet operators can access these discounts until March 2026 as part of the Plug-in Truck Grant.
While the day-to-day running costs of Electric Vehicles (EVs) can be lower than diesel, the upfront costs are usually higher. The plan comes as part of a £318 million green freight investment to reduce emissions and cut industry costs.
Possible savings are based on the sizing of lorries as follows:
- Smaller trucks (4.25 to 12 tonnes): up to £20,000
- Mid-sized trucks (12 to 18 tonnes): up to £60,000
- Larger trucks (18 to 26 tonnes): up to £80,000
- The largest lorries (26 tonnes and over): up to £120,000
Minister for Aviation, Maritime and Decarbonisation, Keir Mather, said, “We’re backing British businesses to go green by making electric lorries more affordable, helping hauliers to make the switch whilst turbocharging growth, investment and jobs in the sector.”
Companies such as Amazon and Marks & Spencer have made already increased their fleet of electric trucks with backing from this fund. ZEHID has followed suit by rolling out nearly 300 zero emission HGVs by March 2026.
While EVs come with their own set of barriers, including a new Electric Vehicle Excise Duty announced in the Autumn Budget, increased funding has aimed to make the transition more manageable for business. In August 2025, the Plug in Grant Scheme was extended to 2027. Under the scheme, grants are provided to businesses to support the uptake of low-emission commercial vehicles like vans and trucks. At the point of purchase, discounts of up for £25,000 are allocated based on the van or truck size.
New consultation launched
Along with the funding increase, a new consultation seeks to further understand the regulatory roadmap on HGVs, seeking feedback on the phaseout of non-zero emissions HGVs by 2040. This consultation aims to provide more clarity for industry to help support planning and investing for the future.
Stakeholder views are requested regarding the categorisation of vehicles, flexibilities, and penalties, as well as CO2 emissions reduction trajectories for a future regulatory framework. The full consultation can be found here and will be open until 17 March 2026.
