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UK offers longer runway for truck electrification, but grant caps are lower than January’s headline figures

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The UK government has unveiled a new funding package for zero-emission vans, trucks and depot charging, in a move aimed at tackling two of the biggest barriers fleets face when switching away from diesel: high vehicle prices and lack of charging infrastructure at depots.

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The package, announced on 25 March, combines a new Zero Emissions Truck and Van grant scheme with an expanded Depot Charging Scheme. The government says the overall support is worth £1 billion, with the vehicle grant programme running from 1 April 2026 to 31 March 2030 and backed by £877 million, while the depot charging fund receives a £170 million boost.

Under the new truck scheme, operators can receive up to £81,000 towards the cost of the heaviest zero-emission trucks, with support covering up to 40% of the purchase price. Businesses and public authorities can also claim up to £1 million towards depot charging installations, covering up to 70% of eligible costs for infrastructure for vans, coaches and electric HGVs.

For road freight operators, the depot charging element may prove more important than the headline funding total. Logistics UK said high upfront vehicle costs and the difficulty of securing depot charging remain among the biggest barriers to electric HGV adoption, and welcomed the new support as a meaningful step forward.

That matters because the UK market is still at an early stage. According to SMMT, registrations of new zero-emission HGVs rose 170.5% year on year in 2025 to 587 units, but that still represented only 1.4% of all new HGV registrations. SMMT also warned that some operators face depot-to-grid connection delays of up to 15 years, which it described as a major disincentive to investment.

Bigger package, smaller per-truck headline

The announcement also marks a shift from the short-term support package the government presented in January. At that time, ministers said businesses could get up to £120,000 off the cost of the largest electric lorries through an additional £18 million extension of the Plug-in Truck Grant, which was due to run only until March 2026.

In that January scheme, the published grant caps were:

  • up to £20,000 for 4.25–12 tonne trucks
  • up to £60,000 for 12–18 tonne trucks
  • up to £80,000 for 18–26 tonne trucks
  • up to £120,000 for trucks above 26 tonnes.

By contrast, the new long-term scheme comes with a lower top-line figure for the heaviest trucks: £81,000 rather than £120,000. That means the government is now offering operators a longer funding horizon and adding depot support, but not maintaining the same maximum per-vehicle subsidy highlighted earlier this year. 

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