UK announces plans to reduce cost of electric lorries by up to £120,000

Hauliers and fleet operators aiming to reduce their road-based emissions by using electric vehicles have been given a boost after the UK government announced an £18mn increase to the Plug-in Truck Grant.  

According to a 6 January statement, the rise in funding could see companies get discounts of as much as £120,000 for the largest vehicles within the scheme’s remit. The increase will last until March 2026, with plans for the 2026/27 financial year expected soon.  

“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 government said. “The increase to the Plug-in Truck Grant will help businesses access those daily savings, cutting costs for businesses as well as emissions,” it added.  

A breakdown of the vehicles eligible for a grant has been published on the government’s website. Sellers will incorporate the discounts into the purchase price of vehicles.  

SMEs play a critical role in the UK’s haulage sector, with the Road Haulage Association (RHA) noting that the majority of its members fall into this category. 

For firms in England, Scotland and Wales, the new grant levels mean those purchasing smaller trucks weighing between 4.25 and 12 tonnes could save up to £20,000, while savings on mid-sized trucks could reach £60,000.  

Savings for larger trucks weighing between 18 and 26 tonnes and the biggest vehicles, weighing 26 tonnes and over, could amount to £80,000 and £120,000, respectively. The maximum discounts in Northern Ireland are lower.  

Keir Mather, the UK government’s minister for aviation, maritime and decarbonisation, expressed optimism about the scheme’s potential. “Our proposals will provide the certainty the industry has been calling for so that Britain becomes the best place for green investment,” he said.    

In addition to its funding announcement, the government has also launched a consultation looking at “the most appropriate future regulatory framework to support the transition to zero emission heavy goods vehicles (HGVs).” Details of the consultation, which ends on 17 March 2026, can be found here.