The UK government has confirmed that Plug-in Van Grant for electric van and pickup buyers will continue until at least 2027, giving businesses and sole traders more time to make the switch to zero-emission models.
Current grant amounts: Up to £2,500 off small electric vans, up to £5,000 off large electric vans.
Extended until at least 2027: You can plan EV purchases with certainty for the next two years.
2026/27 rates unknown: The grant value from April 2026 could be higher, lower, or the same.
The Plug-in Van Grant currently provides up to £2,500 off the price of a small electric van (up to 2,500kg gross vehicle weight) and up to £5,000 off a large electric van (up to 4,250kg GVW). It’s worth noting that precise grant levels for the 2026/27 financial year have yet to be confirmed, and while they’re likely to remain at similar levels, they could be higher or lower than today’s figures.
Announcing the extension, Future of Roads Minister Lilian Greenwood said the move would help “businesses cut costs and expand” while supporting Britain’s transition to cleaner transport.
Certainty for businesses
The decision means fleet operators – from major logistics firms to one-van tradespeople – can continue to plan electric vehicle purchases with confidence. According to industry data, switching to electric could save a business more than £2,800 a year on fuel alone, with further savings possible by avoiding ULEZ and clean air zone charges.
The Government says the grant is part of a £650 million package to support the uptake of electric vans and trucks, and follows a £30 million investment announced in July to install more than 3,000 new depot-based charge points across the UK.
Commercial transport is responsible for over a third of CO₂ emissions on UK roads, and making the switch to electric is an important step in meeting climate targets. The grant extension is designed to help reduce that impact while giving operators more time to address the practical challenges of going electric, including charging infrastructure, payload considerations, and upfront costs.
More than 1.4 million electric vehicles are already on UK roads, supported by over 83,800 public charge points. A further 100,000 are planned through the £381m Local EV Infrastructure fund.
Trade and fleet operators have welcomed the news. Jambu Palaniappan, CEO of Checkatrade, said: “This news is a big boost for tradespeople across the UK. Lower running costs, freedom from charges like ULEZ, and the ability to plan ahead with confidence – it all adds up to real, practical support.”
“We welcome the government’s continued commitment to supporting the electrification of commercial fleets,” added John Boumphrey, UK country manager at Amazon. “Decarbonising the transportation network is a critical step to enable us to achieve our goal to reach net-zero carbon emissions across our operations by 2040.”
Nicola Dobson, Peugeot UK managing director, said: “The Plug-in Van Grant is essential to help more businesses make the switch to electric, so we’re pleased that the government has confirmed it will continue until at least 2027.”
