Plug-in Truck Grant Cuts Cost of Electric Lorries
The UK government is taking new steps to make electric lorries cheaper for businesses. A funding boost to the Plug-in Truck Grant will cut prices by up to £120,000 per vehicle.
This support aims to help hauliers switch to cleaner transport. At the same time, it encourages investment, growth, and job creation across the freight sector.
Extra Funding Until 2026
The government has added £18m to extend the Plug-in Truck Grant until March 2026. As a result, fleet operators can access major discounts when buying new electric lorries.
This measure forms part of a wider £318m green freight package. The plan focuses on reducing upfront costs while allowing operators to benefit from lower running expenses over time.
How Much Can Operators Save?
The grant works similarly to the Electric Car Grant. It reduces the purchase price of electric lorries, making them more competitive with diesel models.
Under the updated scheme, savings depend on vehicle size:
- Smaller trucks from 4.25 to 12 tonnes can save up to £20,000
- Medium trucks from 12 to 18 tonnes can save up to £60,000
- Large trucks from 18 to 26 tonnes can save up to £80,000
- The largest lorries over 26 tonnes can save up to £120,000
These discounts directly address one of the main barriers to adoption.
Supporting Climate and Transport Goals
The funding supports the UK’s climate targets by encouraging the use of zero-emission vehicles. Electric lorry sales are expected to rise as a result.
In addition, the government has already invested more than £120m through the Zero Emission HGV and Infrastructure Demonstrator programme. This initiative supports trials and deployment of electric lorries and charging infrastructure.
Industry Already Making the Switch
Major businesses have begun expanding their electric fleets. Companies such as Amazon and Marks and Spencer already operate electric lorries on UK roads.
Through the ZEHID programme, nearly 300 zero-emission HGVs are due to roll out by March 2026. These early deployments show the technology works in real-world conditions.
Although electric lorries usually cost more upfront, their daily running costs are often lower. The grant helps businesses reach those long-term savings sooner.
Confidence for Long Term Investment
Alongside the funding boost, the government plans to consult on a roadmap to phase out sales of new non-zero emission HGVs by 2040.
This consultation aims to give operators clear timelines. With greater certainty, businesses can plan investments, train staff, and expand charging infrastructure.
By working closely with industry, the government wants a transition that cuts emissions while supporting jobs and economic growth.
Conclusion
The expanded Plug-in Truck Grant marks a key step in decarbonising UK freight. Cutting purchase costs and reducing financial risk, it helps hauliers move toward electric lorries with confidence.
As funding continues and policy clarity improves, electric trucks are set to play a growing role in the future of UK transport.
