Department for Transport extends electric van and truck grants

Department for Transport extends electric van and truck grants


The government has extended its subsidy programme for electric vans and trucks for another two years until 2025. From April, new weight classes will also apply for the subsidy.

With nearly 5% of the UK’s CO2 emissions currently coming from vans, the two-year extension to these grants and the switch to greener vehicles such as electric vans is essential to support the government’s climate change and air quality commitments.

“As demand for electric vehicles continues to grow at speed, this extension to our grant scheme will allow tens of thousands more vans to be purchased, transporting goods in a way which is kinder to our environment,” said Transport Minister Trudy Harrison.

As well as the extension to grant schemes, the government has also announced it will continue to allow drivers holding standard car driving licences to drive electric goods vans at a higher weight limit, up to 4.25 tonnes (compared to a 3.5 tonne limit for diesel vans). This is intended to take into account the additional weight of electric vehicle batteries and make it easier for businesses and drivers to make the switch.

Eligibility criteria for existing plug-in vehicle grants will also be recategorised from the spring with a focus on heavier vehicles. From 1st April 2022, the threshold to claim the small truck grant of up to £16,000 will be increased from 3.5 tonnes to 4.25 tonnes. Vans up to 4.25 tonnes will be able to claim the large van grant of up to £5,000.

With an increasing number of large vans on the market, the move will ensure government targets support where it’s most needed, allowing for heavier and more costly trucks, up to 12 tonnes, to benefit from the higher grant funding.