The UK government has extended its subsidy programme for plug-in vans and trucks until at least 2027, continuing to provide financial support to companies switching to electric transport. This move should not only accelerate the phase-out of internal combustion engine vehicles, but also reduce the burden on businesses amid rising fuel and maintenance costs.
Under the current scheme, businesses can expect significant discounts when purchasing environmentally friendly transport: up to £2,500 for small vans, up to £5,000 for large vans, up to £16,000 for small trucks and up to £25,000 for heavy trucks. The amount of subsidies for the 2026–2027 financial year will be specified later, which leaves room for a possible increase in support depending on market conditions.
Minister for Future Transport Lilian Greenwood emphasised that the extension of the programme is “another decisive step towards more sustainable transport.” According to her, the initiative not only encourages investment in electric vehicles, but also helps companies reduce costs, increase competitiveness and expand their activities.
The benefits of switching to electric transport are tangible: according to industry estimates, businesses save more than £2,800 per year on fuel costs alone. This is particularly relevant for the logistics sector, which employs over 1.2 million people and contributes more than £79 billion to the economy each year.
Plan for Change
The subsidy programme is part of a £650 million government initiative that is part of the national “Plan for Change.” Its aim is to accelerate the electrification of transport, reduce carbon dioxide emissions and support economic growth at the same time.
Checkatrade CEO Jambu Palaniappan said the new measure would be “a major boost for service workers across the country.” According to him, electric vehicles not only offer lower operating costs but also eliminate additional charges such as ULEZ entry fees, which is a tangible practical support for small and medium-sized businesses.
Commercial transport is currently responsible for more than a third of COâ‚‚ emissions on UK roads, so its electrification is seen by the government as a priority for achieving climate targets.
The extension of subsidies also complements the previously announced investment of £30 million to install more than 3,000 charging stations in logistics and service depots across the country. This will enable businesses to switch to green transport without the risk of facing infrastructure shortages.
There are currently over 1.4 million electric vehicles and more than 83,800 public charging points in the UK. In addition, through the £381 million Local Electric Vehicle Infrastructure Fund, there are plans to install more than 100,000 charging stations. All this should make the transition to electric transport as accessible and convenient as possible.
