The government has extended its Plug-in Van and Truck Grant, which discounts the price of a new commercial EV by up to £25,000, until 2027.

Originally due to end next April, the grant launched in 2012 for vans and 2016 for trucks as Westminster tried to tackle one of the UK’s largest sources of emissions: commercial transport. 

Trucks and vans are responsible for more than a third of the CO2 created on UK roads, it claims, meaning “it is crucial businesses are supported in make the transition to electric", the government said in a release on Monday.

The grant currently offers discounts of up to £2500 for small vans, £5000 for large vans, £16,000 for small trucks, and £25,000 for large trucks. The government said new grant levels will be published soon – and they are expected to rise in a bid to get more EVs on British roads.

Westminster said the discounts will continue until “at least” 2027, suggesting it could be extended again.

The extension comes as part of a £650 million fund the government is spending to increase EV uptake and improve the UK’s charging infrastructure. That cash is also funding the Electric Car Grant, which was announced earlier this month.

The government said the extension will make the electric transition for the UK’s logistics sector “smoother” while also creating jobs. It added it will “keep the UK on track to becoming a clean energy superpower”

Future of Roads Minister Lilian Greenwood said: “Extending these grants is another decisive step to power Britain’s transition to cleaner transport.  

“Every EV on our roads means healthier communities and new economic opportunities across the country.” 

Jambu Palaniappan, CEO of Checkatrade, welcomed the grant. “This news is a big boost for tradespeople across the UK," he said.

"Lower running costs, freedom from charges like ULEZ, and the ability to plan ahead with confidence - it all adds up to real, practical support."