Electric van and truck grants extended 鈥 is it time for your business to make the switch?
August 18, 2025 by Siobhan Doyle
Car changing is a big deal
The government has extended its plug-in van and truck grant to 2027. Could this encourage your business to switch to electric?
If you run a business, you already know every pound counts, whether it鈥檚 on fuel, maintenance, or keeping your team on the road. To help cut costs, the government has extended its plug-in van and truck grant, giving business owners more time to consider switching to electric vehicles.
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This week, future roads minister Lilian Greenwood confirmed that the Plug-in Van and Truck Grant will be extended until at least 2027. That means you can still get thousands shaved off the price of a new electric vehicle. This includes:
- Up to 拢2,500 off small vans
- Up to 拢5,000 off large vans
- Up to 拢16,000 off small trucks
- Up to 拢25,000 off large trucks
For business owners, the extension of the government鈥檚 plug-in van and truck grant could make switching to electric vehicles more manageable. Industry figures suggest moving to EVs could reduce fuel costs by over 拢2,800 per year per vehicle. EVs are also exempt from charges such as ULEZ, which can further lower operating costs.
The grant extension applies to businesses of all sizes. Whether you鈥檙e a sole trader with one small van or a fleet manager running dozens, the additional support allows for longer-term planning when considering vehicle upgrades.
The government is also investing in charging infrastructure. Over 3,000 new depot charging points are planned, along with a 拢381m fund to deliver more than 100,000 public chargers across the UK.
Industry leaders have noted the potential impact. Amazon UK鈥檚 John Boumphrey described electrifying fleets as 鈥渃ritical鈥 to meeting net-zero targets, while Checkatrade CEO Jambu Palaniappan highlighted practical benefits for tradespeople, including lower running costs and greater certainty for planning.
With more than 1.4 million electric vehicles already on UK roads, the transition to cleaner transport is gaining momentum. The extended grant offers businesses additional time and support to consider making the switch to electric.
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