Plug-in van and truck grants extended for two years

The government has announced a two-year extension of plug-in van and truck grants, in a bid to support more businesses to make the switch to electric and to help the shift to net zero. The move comes as the UK seeks to become less reliant on imports of foreign oil and reduce vulnerability to volatility in global energy prices. Last year, industry figures showed the UK had the highest number of plug-in electric vans sold in Europe and there were around four times as many grant applications compared to 2020.

Existing grants have supported the purchase of more than 26,000 electric vans and HGVs across the UK since the programme launched in 2012. 

As well as the extension to grant schemes, the government has also announced it will continue to allow drivers holding standard car driving licences to drive electric goods vans at a higher weight limit, up to 4.25 tonnes (compared to a 3.5 tonne limit for diesel vans).

This takes into account the additional weight of electric vehicle batteries and makes it easier for businesses and drivers to make the switch.

Eligibility criteria for existing plug-in vehicle grants will also be recategorised from the spring with a focus on heavier vehicles.

From 1 April 2022, the threshold to claim the small truck grant of up to £16,000 will be increased from 3.5 tonnes to 4.25 tonnes. Vans up to 4.25 tonnes will be able to claim the large van grant of up to £5,000.

Transport Minister Trudy Harrison said:” We are backing a generation of green growth for our thriving fleet sector.

“As demand for electric vehicles continues to grow at speed, this extension to our grant scheme will allow tens of thousands more vans to be purchased, transporting goods in a way which is kinder to our environment.   This will support our vital, ongoing work to clean up our air in towns and cities right across the country and build back greener.”