The Government has announced an extension to the Plug-In Van Grant, confirming that the discount scheme will now run until at least 2027 — a welcome move for fleet operators and tradespeople navigating the cost and complexity of going electric.
While electric vans typically offer long-term savings in running costs and tax, upfront prices remain a key barrier for many businesses. This grant extension will help bridge that gap.
Currently, discounts of up to £2,500 for small vans and up to £5,000 for large vans will continue, providing much-needed certainty for both major logistics providers and smaller independent operators planning their next procurement cycle, although there has been no confirmation on the grant levels for 2026/27 and the number available.
The update forms part of the Government’s wider £650 million Plan for Change, aimed at boosting EV uptake and economic growth. Businesses making the switch to electric could save more than £2,800 per year on fuel alone, according to industry figures. The sector’s impact is significant: commercial transport accounts for over one-third of CO₂ emissions on UK roads, meaning decarbonisation here is key to hitting net zero targets.
The move has been welcomed across the fleet industry. Mike Hawes, Chief Executive of industry body the SMMT, said:
“Extending the Plug-in Van Grant until 2027 will help increase zero emission uptake in the critical commercial vehicle sector. One of the major barriers to adoption is affordability, so this extension will reduce the initial cost of acquisition which, together with the accelerated rollout of infrastructure, will help more operators make the switch.”
Private users will also benefit from the ongoing discount, though the message from Government is clear: this policy is about supporting the industries that keep the economy moving. From nationwide parcel networks to sole-traders in urban ULEZ zones, the plug-in grant helps maintain mobility and competitiveness — all while accelerating the UK’s shift to cleaner transport.
“Lower running costs, freedom from charges like ULEZ, and the ability to plan ahead with confidence — it all adds up to real, practical support,” said Checkatrade CEO Jambu Palaniappan. “For many tradespeople, switching to electric vans is now a real, affordable option.”
Need to know how the Plug-in Van Grant will work for your business?
CBVC Vehicle Management is able to provide support and guidance throughout the grant application process – call us on 01283 351201 to speak to one of our leasing executives.
