11:41 am, February 25, 2025
The Plug-in Van Grant will remain in place until 2026 after the Government announced an extension to the scheme as part of a bumper £120m funding package.
The initiative, which allows businesses and van drivers get money off the cost of an electric van, was due to end in April but will now extend into next year.
The decision has been made to help ‘cut red tape blocking businesses from switching to zero emission vans’.
The grant will continue in its current guise, allowing beneficiaries to receive grants of up to £2,500 when buying small vans, weighing up to 2.5 tonnes.
Meanwhile, those buying larger vans, which weigh up to 4.25 tonnes, can receive as much as £5,000 off the price of their vehicle.
The grant has so far helped sell over 80,000 electric and zero emission vans since its launch, way back in 2012.
Elsewhere, the Department for Transport has also announced plans to remove the requirement for additional training that is currently in place only for zero emission vans but not their petrol and diesel equivalents.
It is hoped that the measures, which will take away significant training costs, will make it easier for firms to hire drivers.
This will help businesses by taking away training costs, cutting red tape and making it easier to hire drivers when operating electric vans.
Future of Roads Minister, Lilian Greenwood, said: ‘From van drivers and businesses, to drivers with accessibility needs, bikers and cabbies, today we are making it easier, faster and cheaper for people to switch to electric vehicles.
‘By making the transition to zero emissions a success, we’re helping to drive growth all over the UK, putting more money in people’s pockets and rebuilding Britain to deliver our Plan for Change.’
⚡️ We’re investing £120m to help boost the roll-out of electric vans, wheelchair accessible vehicles and taxis.
Our support means businesses and van drivers can apply for grants when buying a zero-emission vehicle, making it easier and cheaper to make the switch. pic.twitter.com/7oUbLihfKD
— Department for Transport (@transportgovuk) February 25, 2025
The news, announced earlier today (Feb 25), has already been welcomed by Stellantis, which recently announced plans to close its electric van plant in Luton.
Eurig Druce, managing director of Stellantis UK, said: ‘The extension of the Plug-in Van Grant to 2026, and the removal of the unnecessary red tape around additional driving licence requirements for electric vans, is welcome news for UK businesses looking to take advantage of the environmental and cost benefits of electric vans.
‘Vauxhall, and its sister Stellantis brands Peugeot, Citroën & Fiat Professional, offer an electric version of every van in their line-ups with a number of them manufactured here in the UK.’
Also included in today’s DfT announcement was the news that taxi drivers will be able to receive a £4,000 grant to go towards buying a zero emission black cab, making journeys cleaner and more comfortable for passengers.
The Plug-in wheelchair accessible vehicle grant cap is also being increased from £35,000 to £50,000, giving consumers a wider choice of vehicle models and removing barriers for disabled passengers.
Meanwhile, bikers will continue to enjoy a £500 grant from the Government to buy an electric motorbike for another year.
