Fleets looking to transition to electric vehicles will continue to receive financial support, as the plug-in van grant has been extended for another year. Originally set to expire in April 2025, the incentive will now be available until April 2026, providing up to £5,000 towards the cost of an electric van.
The Department for Transport (DfT) confirmed the extension on February 25, stating that the grant will be partially funded through a £120 million Government investment. The incentive will maintain its current levels, offering up to £2,500 for smaller vans (up to 2.5 tonnes) and £5,000 for larger vans (up to 4.25 tonnes).
Since its introduction in 2012, the grant has contributed to the sale of more than 80,000 electric and zero-emission vans across the UK, so the continuation of the grant is expected to be well received by businesses looking to reduce their carbon footprint. The announcement was made alongside driving licence rule changes that will allow heavier electric vans to be driven under the same conditions as their lighter petrol and diesel counterparts.
Alongside support for electric vans, the Government has extended:
• Taxi grants, offering up to £4,000 towards the cost of an electric taxi for another year.
• Plug-in wheelchair-accessible vehicle grants, increasing the funding cap from £35,000 to £50,000.
• Electric motorbike grants, maintaining a £500 incentive for bikers purchasing a zero-emission model.
However, the DfT has cautioned that all plug-in vehicle grants will remain under review, stating that funding must provide the "greatest value for money" for taxpayers. The department also noted that grants "may close without notice."
The extension of the plug-in van grant and other electric vehicle incentives is expected to provide businesses with much-needed financial relief as they shift towards zero-emission alternatives. However, with the Government keeping all grants under constant review, fleet operators and industry experts are urging policymakers to address infrastructure challenges and provide long-term regulatory clarity.
With ongoing consultations regarding electric van regulations, the coming months will be crucial in determining whether the UK's fleet sector can fully embrace an electric future.