Government extends plug-in vehicle grants
The government’s plug-in truck grant will continue at current levels into the 2025/26 financial year, the Department for Transport has announced.
The scheme enables up to £16,000 to be claimed for small trucks (between 4.25 and 12 tonnes) and up to £25,000 for those over 12 tonnes.
250 small truck grants will be available to industry, and these are limited to 10 per end customer, while 100 large truck grants are available, limited to five per end customer.
Reporting the news, the Society of Motor Manufacturers & Traders (SMMT) said that type-approval VECTO simulations, in accordance with EU regulations, would now be treated as acceptable forms of evidence in order to demonstrate a truck’s zero-emission electric range performance. This should reduce the physical burden of testing on the industry and improve access to the plug-in grant.
The roads minister Lilian Greenwood said: “I am thrilled to confirm that truck drivers, haulage companies and businesses all over the UK will continue to benefit from our fantastic plug-in truck grant for another year.
“This is brilliant news, as we continue to make it cheaper, smoother and easier to make the switch to zero emission trucks.”
Logistics UK deputy director for policy, Michelle Gardner, said the extension would speed up decarbonisation by helping make the business case for investing in electric vehicles.
“Cost is a significant barrier for businesses when investing in green technology, so extending the plug-in truck grant will encourage HGV fleet decarbonisation by removing some of the risk,” she said.
“We have been calling for the grant to be extended for some time and our members will be encouraged that the government is taking industry’s views on board.
“Alongside affordable electric vehicles, the sector needs a comprehensive charging network, and we continue to urge the government to ensure the energy infrastructure is delivered at the pace the sector requires to maintain the nation’s supply chains while meeting net-zero goals.”
RHA senior policy lead Chris Ashley said: “We’ve been clear that by reducing the costs of decarbonisation and ensuring the required infrastructure is in place, our sector can prepare and fully play its part on the road to net zero.
“We welcome the extension of the plug-in grant for trucks for another year. However, additional financial support will be needed to help hauliers and coach operators to decarbonise viably.
“Key to this is ensuring stable residual values that allow finance to be offered on favourable terms. We are working with the Green Finance Institute to develop options that address this.”
The news follows an earlier announcement that the equivalent scheme for vans would also be extended, providing grants of up to £2,500 when buying smaller vans (up to 2.5 tonnes) and up to £5,000 for larger models (up to 4.25 tonnes).
DfT said it would also make the switch to zero-emission vans easier by removing the need for additional training that is currently in place only for zero-emission vans, but not their petrol and diesel equivalents.
