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Hauliers will be able to access discounts of up to £120,000 on new electric trucks, thanks to an additional £18m of funding announced by the government today (6 January) to increase the Plug-in Truck Grant until March 2026.
Alongside the increased funding, the government is also set to launch a consultation on plans to phase out sales of new non-zero emission HGVs by 2040, which will ask for industry comment on how the phase out of the sale of non-zero emission HGVs by 2040 should be conducted.
Announcing the additional £18m of funding, the DfT said that whilst day-to-day running costs can be lower for electric trucks compared to their diesel counterparts, upfront vehicle costs are typically higher.
It added that today’s increase to the Plug-in Truck Grant will help businesses access those daily savings, cutting costs for business as well as emissions.
New Plug-in-Truck Grant levels will enable operators to save up to £20,000 on smaller trucks (4.25t-12t); up to £60,000 on mid-sized trucks (12t-18t); up to £80,000 on larger trucks (18t-26t); and up to £120,000 on the largest lorries (26t+).
The funding is part of wider moves to increase zero emission truck sales to support delivery of UK’s climate obligations and follows the £120m-plus investment in the Zero Emission HGV and Infrastructure Demonstrator (ZEHID) programme which is rolling out zero emission lorries on UK roads.
Backed by this fund, companies like Amazon and Marks & Spencer have already deployed more electric delivery trucks on UK roads, with ZEHID set to roll out nearly 300 zero emission HGVs by March 2026.
Keir Mather, minister for aviation, maritime and decarbonisation, said: “We’re backing British businesses to go green by making electric lorries more affordable, helping hauliers to make the switch whilst turbocharging growth, investment and jobs in the sector.
“Our proposals will provide the certainty the industry has been calling for so that Britain becomes the best place for green investment.”
John Boumphrey, Amazon UK country manager, commented: “Amazon welcomes the government’s continued commitment to supporting the electrification of commercial fleets.
“The UK will be home to the largest number of electric heavy goods trucks in Amazon’s global transportation network and the first of our record-breaking order of eHGVs are already on the road.
“We’re investing to help the UK decarbonise and meet our goal of being net-zero carbon by 2040. We look forward to continuing to work with the government to ensure the growth of more sustainable logistics.”
The Plug-in Truck Grant and Plug-in Van Grant are confirmed to continue in the financial year of 2026/27. DfT said this week that further details, including grant rates, will be published “in due course”.
