The shift towards electric transport has been gathering pace for several years, but for many businesses the cost of adoption remains a barrier. To ease this transition, the Government has confirmed that the plug-in van and truck grant will be funded for a further year from April 2026. This decision provides fleets with more time and greater certainty as they plan for the future of their operations.
Currently, the grant 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. While the exact levels of support beyond April 2026 are still to be decided, the continuation of funding signals a clear commitment to helping businesses embrace zero-emission vehicles.
For fleet operators, this extension is welcome news. Running a fleet is not only about keeping vehicles on the road but also about managing long-term costs, compliance, and sustainability. With grant funding secured until 2026, businesses of all sizes, from large logistics providers to small firms running panel vans or a compact van for local deliveries, can move forward with more confidence. It creates the stability needed to budget for replacements and invest in greener transport without the fear of incentives being suddenly withdrawn.
The plug-in grant also helps to balance out some of the challenges that still exist with electric vans and trucks. Purchase prices remain higher than equivalent diesel models, and operators continue to face questions about range, payload, and the availability of charging infrastructure. By lowering the initial cost, the grant makes it easier for businesses to trial electric vehicles, build real-world experience, and plan how electrification fits into their wider fleet management strategy.
Industry figures show that uptake of electric vans is rising, but progress is slower than targets demand. Sales are growing, yet electric vans account for less than one in ten of all registrations so far this year. For trucks, the transition is even more gradual due to operational demands and the need for more charging capacity across the country. The extension of the grant gives businesses breathing space to adapt while the market and infrastructure continue to develop.
Government funding will not last forever, and taking advantage of the grant while it is still available can deliver meaningful savings. Beyond the financial aspect, electric vehicles can also reduce running costs over time, particularly in fuel and maintenance. They help businesses lower emissions, meet sustainability targets, and provide drivers with modern vehicles that deliver both performance and peace of mind on the road.
At Toomey Leasing Group, we understand that every fleet is different. Whether you run a handful of vans for local service work or manage a nationwide network of vehicles, our team can guide you through the options available. With over 50 years of experience, four UK offices, and dedicated account managers, we specialise in making complex transitions simple. From exploring grant eligibility to choosing the right vehicles for your operation, we’re here to help you plan confidently for the future.
The extension of the plug-in van and truck grant is a positive step for the industry and an opportunity for businesses to take advantage of additional support. By acting now, fleets can get ahead of the curve, unlock cost savings, and start building a more sustainable transport strategy.
If you’d like to explore how plug-in vehicles could work for your fleet, get in touch with us today.
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If your business needs any assistance, with setting fleet budgets, or would like to understand more about what vehicles fit into your fleet budget, get in touch today. Our experts can offer guidance regarding alternative fuel types and whole-life cost analysis.