UK extends plug-in van and lorry grant until 2027

The scheme, which has been in place for several years, offers purchase discounts of up to £2,500 for small vans, £5,000 for large vans, £16,000 for small lorries, and £25,000 for large lorries.

Grant levels for the 2026–27 financial year will be announced in due course.

According to the Department for Transport, the extension is intended to give fleet operators greater certainty when planning vehicle investments. It follows the government’s announcement in July of a £30 million Depot Charging Scheme, which will fund the installation of more than 3,000 chargepoints at logistics depots across the country.

Hauliers urge action on costs beyond vehicle price

The Road Haulage Association (RHA) welcomed the grant extension, describing it as “welcome certainty” for businesses. However, the organisation warned that barriers around financing and infrastructure remain a major challenge.

Richard Smith, RHA Managing Director, said:

“Businesses will be encouraged that the plug-in grant scheme is being extended until at least 2027. Confirmation of the scheme continuing until 2027 provides welcome certainty for many firms. As we outlined in our Future of Fleets report, more support will be required to allow companies to invest viably in zero emission commercial vehicles.”

The RHA has called on the government to introduce a residual value guarantee scheme to help bring down financing costs, and to provide additional support for grid connection charges, which the association says are often beyond the means of individual firms.