Plug-in van grant extended for another year

Fleets will continue to benefit from up to £5,000 off an electric van after the plug-in grant was extended until April 2026.

The cash incentive was due to end this April, but the Department for Transport (DfT) has confirmed today (Tuesday, February 25) it will benefit, in part, from £120 million in Government funding.

The plug-in van grant will also remain at the same level, offering up to £2,500 when buying a small van up to 2.5 tonnes and up to £5,000 for larger van up to 4.25 tonnes.

The DfT estimates that it has helped sell more than 80,000 electric and zero-emission vans since its launch in 2012.  

Fleets will welcome the continued cash support to help them make the switch, which has been announced alongside changes to driving licence rules for heavier electric vans to bring them in line with their lighter petrol and diesel equivalents.  

Future of roads minister, Lilian Greenwood, said: “From van drivers and businesses to drivers with accessibility needs, bikers and cabbies, today we are making it easier, faster and cheaper for people to switch to electric vehicles.

“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 DfT has also announced it is extending grants of up to £4,000 for taxi drivers to make the switch to electric for another year.

Furthermore, the plug-in wheelchair accessible vehicle grant cap is being increased from £35,000 to £50,000, while bikers will continue to have access to a £500 grant from Government to buy an electric motorbike for another year.

The DfT, however, added that all plug-in vehicle grants will remain under review to deliver the “greatest value for money” for the taxpayer and “may close without notice”.