Hauliers and fleet operators will now be able to access discounts of up to £120,000 on new electric trucks through government funding of the technology.
The cash comes from an additional £18 million to increase the Plug-in Truck Grant until March 2026, and is part of an overall package of £318 million for green freight,
Similar to the government’s Electric Car Grant, which delivers discounts on electric vehicles by up to £3,750, the Plug-in-Truck Grant enables lorry operators to access savings of up to £120,000 when buying a new electric truck.
The grant levels are;
- smaller trucks (4.25t to 12t) could save up to £20,000
- mid-sized trucks (12t to 18t) up to £60,000
- larger trucks (18t to 26t) up to £80,000
- and the largest lorries (26t and over) up to £120,000
Minister for Aviation, Maritime and Decarbonisation, Keir Mather, said:
“Our proposals will provide the certainty the industry has been calling for so that Britain becomes the best place for green investment.
“The funding is set to increase zero emission truck sales to support delivery of the UK’s climate obligations and comes as the government has already invested over £120 million as part of the zero emission heavy goods vehicle (HGV) and infrastructure demonstrator (ZEHID) programme to roll out more zero emission lorries on UK roads.
“Backed by this fund, companies like Amazon and Marks & Spencer have already rolled out more electric delivery trucks on UK roads, with ZEHIDrolling out nearly 300 zero emission HGVs by March 2026.
“Day-to-day running costs can already be lower for electric lorries compared to their diesel counterparts, but upfront vehicle costs are typically higher. The increase to the Plug-in Truck Grant will help businesses access those daily savings, cutting costs for businesses as well as emissions.”
John Boumphrey, UK Country Manager, Amazon UK:
“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.
“Alongside increased funding, the government will also launch a consultation on the regulatory roadmap to phase out sales of new non-zero emission HGVsby 2040, giving industry the certainty it needs to invest and plan for the future.
“By consulting closely with industry, the government will ensure the road to net zero is one that works for businesses and supports jobs, growth and increased investment.”
Jarrod Birch, head of policy and public affairs, ChargeUK said:
“The new grants are a welcome kick starter for the electrification of freight. However as with electrification of cars we need long-term, clear policy to encourage investment in both the vehicles and the charging infrastructure. So we hope to see this new funding continue beyond March and be matched with support for the rollout of the widespread and affordable charging infrastructure required for HGVs too.
“Now the Government is showing an intention to support electric HGVs the charging industry will be eager to step up with an acceleration of charge point deployment. To do so a stable and clear regulatory framework is needed, including dedicated funding for charging as well as vehicles, fast tracked grid connections and mechanisms to help bring down public and depot charging costs.”
Head of Decarbonisation Policy at business group Logistics UK Lamech Solomon said:
“The Plug-in Truck Grant is fundamental to the continued uptake of electric HGVs, and today’s announcement increasing the grant for electric HGVs up to £120,000 per vehicle 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.
“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.
“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.”
RHA managing director, Richard Smith 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.”
Simon Smith, CEO of Voltempo, commented:
“Today’s announcement is a welcome step forward for the UK’s road freight sector, signalling further momentum behind the electrification of heavy goods vehicles. 2026 is shaping up to be the year of the eHGV, and measures like the Plug-in-Truck Grant give more fleet operators the confidence to start investing. But incentives alone won’t deliver mass adoption. What really matters is whether electric trucks make commercial sense day-to-day.
“The challenge is total cost of ownership and operational reliability at scale. This is where public and private sectors must move together. At Voltempo, we focus on turning this ambition into operational reality. Depot charging is at the heart of this transformation allowing operators to integrate ultra-rapid, secure, and predictable charging into live operations, maximising vehicle utilisation while creating additional revenue opportunities through controlled third-party access. By combining charging infrastructure with intelligent data management, operators can optimise energy use, reduce operational costs, and future proof for the next generation of fleets, including MCS-capable and autonomous vehicles.
“Policy support remains crucial, but it must reflect the practical realities of commercial operations, including grid access, energy pricing, site security, and scalability. Progress will depend on close collaboration between government, industry and innovators like Voltempo harnessing British innovation to build infrastructure that works today and adapts for tomorrow.”
Image from Shutterstock
