The UK government has effectively ended support for hybrid vans overnight, tightening the Plug-in Van Grant so that only zero-tailpipe-emission vehicles now qualify. Any van with a combustion engine — including plug-in hybrids — is now excluded from the scheme, marking a decisive shift to a battery-electric-only incentive.
Under the revised criteria, only battery-electric vans offering a minimum zero-emission range of 60 miles are eligible.
The change removes all PHEV vans from the scheme, although there weren’t many to start with. Models now excluded are the Ford Transit Connect PHEV, LEVC VN5, and Volkswagen Caddy eHybrid.
The update draws a clear line under the government’s position that hybrids are no longer part of its long-term decarbonisation strategy for light commercial vehicles.
Importantly for fleets, vehicles already submitted through the grant portal before the rule change will still be honoured. However, any new applications must meet the updated zero-emission criteria.
Grant values themselves remain unchanged at £2,500 for small vans under 2.5 tonnes, and £5,000 for large vans.
The timing is notable, with end-of-year figures showing that battery-electric vans made up just 9.4% of LCV registrations in 2025, well below the government’s 16% target. This change removes grant support from fleets considering using hybrids as a bridge to full electrification, with grant support now available only to fleets willing to commit fully to battery-electric vans.
For fleets still relying on PHEVs as a stepping stone, the change removes a financial incentive but also simplifies the landscape: if grant funding matters, full electric is now the only route.
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