The Labour government has extended the plug-in van grant, a move designed to encourage more drivers to switch to electric vehicles and deliver what they describe as the “greatest value for money.” The grant, which offers financial incentives for purchasing electric vans, will now run until April 2026.
Future of Roads Minister Lilian Greenwood announced the extension, highlighting that the scheme would offer up to £2,500 for small vans (under 2.5 tonnes) and up to £5,000 for larger vans (under 4.25 tonnes).
Since its launch in 2012, the plug-in van grant has helped sell over 80,000 electric and zero-emission vans, according to the Department for Transport. Greenwood, a Labour MP, emphasized the initiative’s benefits: “By making the transition to zero emissions a success, we’re helping to drive growth all over the UK, putting more money in people’s pockets and rebuilding Britain to deliver our Plan for Change.”
The government has also extended grants for taxi drivers, offering £4,000 towards the purchase of zero-emission black cabs. Additionally, the Plug-in wheelchair accessible vehicle grant cap is being increased from £35,000 to £50,000. Motorcyclists will continue to receive a £500 grant for electric motorbikes for another year.
Industry representatives welcomed the extension. Chris Ashley, Net Zero lead at the Road Haulage Association, stated that the extension comes at a crucial time “when sales of EV vans are in danger of waning.” Matthew Dillon, head of commercial vehicles at Ayvens, called the extension a “positive step” and welcomed the removal of additional driver training requirements for heavier alternative-fuelled vehicles, adding that clarity following the consultation is still needed.
Christopher Thorneycroft-Smith, co-founder of Aegis Energy, supported the extension, while stressing the importance of addressing the charging infrastructure gap for fleet operators, as well as reducing upfront vehicle costs.
The government responded to the extension by noting that the transition to electric vehicles continues at pace, with over 382,000 electric cars sold in 2024, up a fifth on the previous year. The grants align with the 2035 petrol and diesel car ban goal and the Zero Emission Vehicle mandate, which mandates that 28 percent of new car sales be electric by the end of the year. The DfT stressed that all plug-in vehicle grants will remain under review to deliver the “greatest value for money” for taxpayers and that grants may close without notice.
