The Government has announced £1 billion to roll out clean trucks and vans and install EV chargers at depots, saying the move will help build resilience against fuel price uncertainty.
According to the Government, the move will save businesses cash, clean up millions of journey miles, and help hauliers become more resistant to global price changes.
The Zero Emissions Truck and Van grants and the Depot Charging Scheme (DCS) aim to tackle two of the biggest barriers to businesses making the switch – upfront costs and access to charging.
Global fuel price uncertainty is challenging for businesses, and these grants will support industry to switch to electric, helping to reduce exposure to fuel price uncertainty.
Aviation, Maritime and Decarbonisation Minister Keir Mather, said:
“This £1 billion investment cuts cost for British businesses, supports jobs, cleans up our roads, and gives operators protection against shifting global fuel prices.
“The logistics sector is the backbone of the UK economy, worth £170 billion and supporting 2.7 million jobs. We’re helping them expand and decarbonise their fleets whilst saving them cash, driving growth up and down the country.”
The truck grant will offer savings of up to £81,000 off the heaviest zero emissions trucks, covering up to 40% of the cost. The van grant will continue to offer discounts of up to £5,000 off the cost of electric vans.
On top of that, businesses and public authorities could save up to £1 million, covering up to 70% of the cost, when installing charging infrastructure for vans, coaches, and eHGVs, thanks to a £170m boost to the Government’s Depot Charging Scheme.
The new funding comes after the Government announced an £18 million uplift in January to slash up to £120,000 off the cost of green lorries, making it cheaper for businesses to go electric, with companies like M&S and Wren Kitchens and Bedrooms taking advantage of funding to decarbonise their fleets and reduce operational costs.
Lee Holmes, Transport and Logistics Director at Wren Kitchens and Bedrooms, said:
“Government investment gives businesses like Wren the confidence to accelerate fleet decarbonisation while maintaining operational stability, even in periods of economic uncertainty.
“With this support, we’ve brought a number of 44-tonne e-trucks into our fleet alongside a rapid charging infrastructure, reducing our reliance on traditional fuels and strengthening resilience and reliability against ongoing market volatility.”
Julian Bailey, Head of Group Transport at M&S, said:
“In 2021, we set ourselves the ambitious target of becoming a net zero business across our value chain by 2040. Since then, we’ve made some great progress, which includes the onboarding of 24 battery electric vehicles across our transport fleet.
“We welcome this investment which serves as a reminder of the importance of the logistics sector in the UK and its role in decarbonisation.”
Alongside support for operators, the Government is also helping families make the switch through the Electric Car Grant which has helped over 80,000 drivers buy an EV, by saving them up to £3750 in the process. This is tackling upfront costs which is one of the biggest barriers to EV adoption.
With 1 in 4 cars sold now electric, it’s crucial to expand the UK’s charging infrastructure and so the Government is spending over £600 million to rollout hundreds of thousands of EV chargers across the country, giving drivers the confidence they’ll be able to charge up whether at home, at work or on the go. This will build on the over 118,000 chargers already available.
Toby Poston, BVRLA Chief Executive said:
“The Depot Charging Scheme is playing a vital role in helping fleet operators and rental companies to install affordable, reliable charging infrastructure at their depots.
“The vehicle rental sector faces one of the most challenging paths to decarbonisation, and this additional support for depot charging will play a major role in building confidence. It will encourage more rental operators – particularly SMEs – to electrify at scale, reduce costs, and contribute to the UK’s net zero goals.”
Further industry reaction:
Jarrod Birch, head of policy and public affairs, ChargeUK commented:
“The direction of travel for trucks and vans is clear – electrification. We called for more enduring funding for electric trucks earlier this year and the Government has delivered. Combined with the funding for depot charging this will really help to tackle businesses’ up-front costs when considering electrification.
“But running costs are just as important and Government has yet to deliver a solution to the policy driven costs which inflate the bills to charge these vehicles. There is a real danger fleet owners will invest in electrification only to be crippled by high standing charges when they are well down the road.
“The market requires a dedicated HGV infrastructure fund and relief for standing charges on depot charging to bring down the total cost of ownership and speed up adoption of cleaner trucks and vans.”
Nick Connor, CEO of the IMI, said:
“This investment is a very positive step and will help remove some of the financial barriers for businesses looking to electrify their fleets. However, funding vehicles and infrastructure is only part of the solution. Without the skilled workforce to maintain, repair and safely handle these vehicles, particularly high-voltage systems and batteries, the transition risks being constrained.
“We cannot afford a mismatch between the number of electric vehicles on the road and the number of qualified technicians able to support them. Targeted government support for training and upskilling is essential to ensure the UK has the capability, confidence and safety standards needed to deliver net zero.
“The IMI continues to work with industry and training providers to expand EV qualifications and support technicians in gaining the skills required for the transition. Together, with the right investment in people as well as technology, the UK can lead the way, but skills must be treated as a core part of the infrastructure.”
Mark Constable, Head of Transport Policy at the REA, said:
“This is a welcome continuation of incentives to decarbonise the commercial vehicle segment, where the economics are more challenging than for cars. The ongoing geopolitical situation will provide an extra incentive for firms to increase their energy security at a more predictable cost, and the funding will directly remove a lot of uncertainty over adoption.
“The recently concluded consultation as to whether new carbon emission limits and/or a ZEV Mandate should be introduced complements this new Demand-side intervention. We look forward to the package bringing more certainty, more decarbonisation, and improved air quality to the commercial vehicle sector.”
Fleet Electrification Forum 2026
The second edition of the Fleet Electrification Forum will take place at Warwick Conferences on 8 July 2026. The event brings together industry professionals across the transport and energy sectors who are focused on delivering the decarbonisation of fleets.
Already announced for the event are some of the biggest companies and operators in the sector, who will be providing vital insights into their programmes and strategies.
This already includes the AA, Energy Networks Association, Innovate UK, Cenex, National Highways, XPO, DPD, RSPB, Openreach, Places for London, CMS Cameron McKenna Nabarro Olswang LLP, and the London Borough of Islington and Westminster City Council, with many more names to be announced.
Conversations will focus on the collaboration between transport and energy on decarbonisation of fleets, financing the transition for public sector fleets, the changing role of the fleet manager, and challenging elements such as the electrification of HGVs.
More information on the event can be found here: https://transportandenergy.com/fef-2026/
Image courtesy of Green Car Guide.
