Big Discounts Continue as EV Adoption Moves Forward
Point-of-sale discounts for electric vans and trucks remain in place, continuing a scheme that has supported uptake since 2012. While details for the 2026–27 financial year have not yet been confirmed, current incentives are guaranteed through 2025–26.
The discounts are applied directly at the dealership or when ordering, meaning there is no need to wait for a rebate. Current grant levels include:
•£2,500 off new small electric vans
•£5,000 off large electric vans
•£16,000 off small electric trucks
•£25,000 off eligible large electric trucks
These reductions are applied upfront, offering immediate savings for businesses investing in electric vehicles.
Why Has the Plug-in Van and Truck Grant Been Extended?
The extension supports the UK’s wider clean transport objectives. From 2026, the Zero Emission Vehicle (ZEV) mandate requires 26% of new van sales to be zero-emission. At present, electric vans account for just 8.8% of new registrations, highlighting a significant gap.
Future of Roads Minister Lilian Greenwood described the extension as “decisive support” at a critical point for adoption. She noted that the grants help accelerate the transition to cleaner transport while supporting industries that rely on commercial vehicles, encouraging investment in EVs and helping businesses manage costs.
Tangible Benefits for Businesses
For businesses of all sizes, the financial impact can be significant. Switching from diesel to electric can reduce fuel costs by more than £2,800 per year, before factoring in lower maintenance costs or savings from avoiding charges such as London’s ULEZ.
Checkatrade CEO Jambu Palaniappan highlighted the confidence these incentives give tradespeople when planning vehicle replacements, pointing to lower running costs and exemption from clean air zone charges.
With over 1.2 million jobs and an estimated £79 billion tied to the logistics and commercial vehicle sector, continued support for electric vans and trucks plays a key role in maintaining competitiveness and supporting long-term growth.
Industry and Manufacturer Response
The extension has been widely welcomed across the industry. Organisations including the Society of Motor Manufacturers and Traders (SMMT) and the Electrical Contractors’ Association (ECA) have praised the added certainty it provides for fleet planning.
Citroën has confirmed that four of its electric vans remain eligible for the scheme, though updated pricing and specifications had not been released as of January 2026. Amazon UK Country Manager John Boumphrey also described the move as a “welcome commitment”, supporting the company’s goal of reaching net zero by 2040.
Infrastructure Investment Supports the Shift to EVs
Vehicle incentives are being matched by investment in charging infrastructure. In July 2025, the government committed £30 million to install more than 3,000 depot charging points nationwide. This forms part of a wider £650 million programme aimed at improving EV affordability, which also includes the recently launched £3,750 Electric Car Grant for private buyers.
The UK now has over 83,800 public charging points, and expanded depot charging should make the transition to electric vehicles more practical for fleet operators.
Looking Ahead
Grant levels are confirmed through 2025–26, but support for 2026–27 has yet to be announced. With ambitious ZEV targets ahead, further incentives may be required to increase adoption beyond the current 8.8% electric share.
Since launching in 2012, the scheme has supported more than 80,000 electric vans on UK roads. The latest extension is expected to push that figure higher.
For businesses and fleet operators considering the switch, current funding offers a clear opportunity while support remains guaranteed. Full eligibility criteria and application details are available on the government’s official website. With stronger incentives, growing infrastructure, and increasing manufacturer choice, the move to zero-emission commercial vehicles in the UK continues to gain momentum.
