At a glance:
- Grants extended: Up to £25,000 off the price of electric vans and trucks available until at least 2027.
- Cost savings: Businesses could save more than £2,800 per vehicle per year on fuel.
- Retail impact: From supermarkets to local shops, retailers running home deliveries gain certainty to invest in greener fleets.
Retailers planning to expand or electrify their delivery fleets have been handed a major boost, after the government confirmed it will extend plug-in van and truck grants through to at least 2027.
The scheme offers discounts of up to £2,500 for small vans, £5,000 for large vans, £16,000 for small trucks and £25,000 for large trucks, giving retailers and logistics providers more certainty to invest in electric vehicles. Funding levels for the 2026–27 financial year will be announced in due course.
According to industry estimates, businesses could save over £2,800 annually on fuel costs per vehicle by making the switch. For retailers managing home delivery operations, the savings could stack up quickly across fleets, while also helping cut emissions.
Future of Roads Minister Lilian Greenwood said the grants were “another decisive step to power Britain’s transition to cleaner transport while backing the industries that keep our economy moving.”
The retail and logistics sector stands to benefit significantly: commercial transport is responsible for over a third of CO2 emissions on UK roads, meaning electrification is both a cost and sustainability priority. The move also builds on last month’s £30m government investment in more than 3,000 new depot chargepoints across the UK, designed to make EV adoption more practical for fleet operators.
For retailers, the grant extension provides long-term clarity at a time when sustainability commitments and consumer expectations around greener deliveries are growing. Whether it’s large multinationals running nationwide e-commerce operations or smaller independents offering local drop-offs, the funding is expected to accelerate investment in electric vans and trucks across the sector.