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The logistics industry has reacted with cautious optimism to the £18m top-up for the Plug-in Truck Grant, which allows hauliers to claim up to £120,000 off new electric trucks.
The move 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 government also confirmed today that it is 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.
Whilst both Logistics UK and the RHA welcomed the announcement both are calling for more clarity from the government on if, or when, the Plug-in-Truck Grant will be extended beyond its current deadline of March 2026.
Lamech Solomon, Logistics UK head of decarbonisation policy, said: “The Plug-in Truck Grant is fundamental to the continued uptake of electric HGVs, and today’s announcement is a welcome step forward that can help support the business case for industry to invest.
“However, with long procurement cycles, the sector needs certainty that these new rates will be maintained far beyond March 2026, so it has confidence to plan and invest.
“Our recently published report highlighted that over 60% of industry respondents believed the government had not provided adequate funding to support the decarbonisation of their fleets.
He added: “Commercial and operational viability will always be the main driver for logistics operators and alongside the cost of buying new vehicles, one of the main barriers they still face to fleet electrification is the lack of charging infrastructure - 85% of operators who responded to Logistics UK’s recent survey expressed low confidence in the availability of suitable public charging and more than 80% disagree they can install chargers with sufficient capacity at their operating sites.
“The logistics sector is committed to decarbonising but needs the government to provide sufficient support to make this transition a realistic possibility for industry,” he warned.
Referring to the consultation on plans to phase out diesel HGVs by 2024, Solomon added: “These are the factors that need to be considered during the consultation, also announced today, regarding the regulatory roadmap to phase out sales of new, non-zero emission HGVs.
“The voice of industry must be heard and government should work with our sector to create a viable pathway to decarbonisation that includes all viable technology routes, ensuring the goods that businesses and consumers across the country rely on, continue to move smoothly through the UK supply chains.”
Richard Smith, RHA MD, voiced similar concerns. He said: “This plug-in grant extension is a welcome step that goes some way towards tackling one of the biggest barriers operators face on the road to Net Zero: upfront vehicle cost.
”Whilst welcome; to create a fully viable zero-emission heavy-duty vehicle market, this level of support must be sustained in future years - and applied to HGVs, vans and coaches.”
The DfT has said that The Plug-in Truck Grant and Plug-in Van Grant are confirmed to continue in the financial year of 2026/27 adding that further details, including grant rates, will be published “in due course”.
