Have you been considering switching your business vehicles to electric but worried about the cost? Are you unsure whether government support will continue long enough for you to confidently plan ahead?
The UK government has just announced a major boost for businesses, confirming that the Plug-in Van and Truck Grant will be extended until at least 2027.
This decision provides certainty for businesses of all sizes, helping them save money, reduce emissions, and build towards a greener future.
What Is the Plug-in Van and Truck Grant?
The Plug-in Van and Truck Grant is a government-backed scheme designed to reduce the upfront cost of purchasing electric vans and trucks. By offering discounts directly applied at the point of purchase, it ensures that businesses and individual drivers face lower barriers when moving away from diesel and petrol vehicles.
The grant offers different levels of financial support depending on the size of the vehicle:
| Vehicle Type | Maximum Discount Available |
| Small vans | £2,500 |
| Large vans | £5,000 |
| Small trucks | £16,000 |
| Large trucks | £25,000 |
These discounts significantly reduce the financial burden on businesses, allowing them to invest in modern, cleaner fleets while keeping costs manageable.
Why Is This Extension Important for Businesses?
Commercial transport is responsible for over a third of all road-based CO2 emissions in the UK, meaning the sector is central to tackling climate change.
The extension of this grant ensures that logistics companies, tradespeople, delivery services, and SMEs can continue to benefit from lower costs while also supporting the UK’s net-zero targets.
For example, according to industry figures, businesses could save more than £2,800 per year on fuel alone by moving to electric.
Beyond fuel, electric vans and trucks reduce maintenance costs due to simpler engine systems, while also avoiding costly charges such as London’s Ultra Low Emission Zone (ULEZ) fees.
Perhaps most importantly, the government’s commitment until at least 2027 provides a stable environment for businesses to make long-term investment decisions.
From major logistics operators running large fleets to sole traders needing just one vehicle, this certainty means electric adoption is no longer a risky or premature move.
How Does This Fit Into the Government’s Wider EV Strategy?
The extension is not an isolated policy but forms part of a much larger investment strategy. The government has committed £650 million through its Plan for Change, aimed at making electric vehicles more affordable and practical for businesses and individuals.
Recent measures include:
- A £30 million investment announced in July 2025 to install over 3,000 new chargepoints at business depots across the UK.
- Expansion of the Local EV Infrastructure Fund, worth £381 million, expected to deliver more than 100,000 new public chargepoints.
- The launch of the new Electric Car Grant, offering individual drivers discounts of up to £3,750 on new electric cars.
The combination of these measures ensures that the UK not only accelerates the transition to EVs but also supports the infrastructure and affordability needed to make the shift realistic. With 1.4 million EVs already on the road and 83,800 public charging points available, the groundwork for mass adoption is already being laid.
What Do Industry Leaders Say About the Extension?
The response from industry leaders has been overwhelmingly positive, with major firms and trade associations recognising the importance of this financial certainty.
John Boumphrey, UK Country Manager at Amazon, welcomed the news, highlighting that electrifying commercial fleets is critical to achieving their net-zero goal by 2040. The grant extension, he noted, gives businesses the assurance they need to continue investing in sustainable transport.
Jambu Palaniappan, CEO of Checkatrade, also praised the move, stressing that tradespeople across the UK will see real, practical benefits.
From avoiding ULEZ charges to cutting running costs and planning vehicle purchases with confidence, the extension provides tradespeople with tools to grow their businesses in a cost-effective and environmentally responsible way.
What Does This Mean for Startups and Small Businesses?
For startups and small enterprises, cost-saving opportunities are often the difference between growth and stagnation. Electric vans and trucks, when supported by government discounts, become an attractive investment that not only reduces daily running expenses but also enhances a company’s sustainability credentials.
Customers are increasingly conscious of businesses’ environmental impact, and choosing EVs can help smaller firms build a competitive edge. Moreover, with logistics and delivery forming a core part of many startups’ operations, the grant extension ensures they are not left behind in the race to electrify transport.
For tradespeople, builders, local delivery companies, and SMEs in particular, the extension of the Plug-in Van and Truck Grant represents both immediate financial relief and a pathway to long-term sustainability.
What Happens Next?
While the grant has been extended to at least 2027, the government has stated that grant levels for the 2026–2027 financial year will be confirmed in due course. This means businesses should take advantage of the current discounts while also preparing for potential adjustments.
The certainty provided by this announcement builds on the government’s wider efforts to deliver not just financial aid but also the infrastructure required to make electric vehicles viable.
From thousands of new depot-based chargepoints to a rapidly expanding public charging network, the support is clear: the UK wants businesses and drivers to go electric.
Final Thoughts
The extension of the Plug-in Van and Truck Grant is more than a simple policy update it is a signal of long-term commitment from the government to support businesses in their transition to clean transport.
For startups, SMEs, and larger firms alike, it removes uncertainty and provides a practical route to lower costs, improved efficiency, and stronger environmental credentials.
With commercial transport playing such a significant role in UK emissions, the continuation of this grant is a decisive step towards both economic growth and environmental responsibility.
Businesses now have the chance to plan with confidence, invest in sustainable transport, and position themselves for success in a greener economy.
FAQs
What is the Plug-in Van and Truck Grant?
It’s a government scheme that reduces the upfront cost of buying electric vans and trucks by offering discounts at purchase.
How long will the grant be available?
The grant has been extended until at least 2027, with future funding levels for 2026–2027 to be confirmed.
How much can businesses save with the grant?
Discounts range from £2,500 for small vans to £25,000 for large trucks, plus potential annual fuel savings of over £2,800.
Who can apply for the grant?
Fleet operators, tradespeople, businesses of all sizes, and individual drivers purchasing eligible electric vans and trucks.
Does the grant cover charging infrastructure?
No, but separate government funds, like the Local EV Infrastructure Fund, support the installation of new chargepoints.
Are electric vehicles cheaper to run than diesel or petrol?
Yes, EVs generally have lower fuel, maintenance, and tax costs, plus exemption from charges like ULEZ in London.
How many electric vehicles are already in use in the UK?
There are more than 1.4 million EVs on UK roads, supported by over 83,800 public charging points.
