The UK Government has announced a major boost for businesses and fleet operators with new funding designed to make electric heavy goods vehicles (HGVs) significantly more affordable.

An additional £18 million has been allocated to the Plug‑in Truck Grant, increasing the level of financial support available to hauliers purchasing new electric trucks. This funding is available until March 2026 and could reduce the upfront cost of electric lorries by up to £120,000 - a substantial incentive to accelerate the transition to zero‑emission freight.

What the Expanded Grant Means for Fleets

The enhanced grant levels offer tiered savings depending on the size of the vehicle:

• Smaller trucks (4.25t–12t): up to £20,000 discount

• Mid‑sized trucks (12t–18t): up to £60,000 discount

• Larger trucks (18t–26t): up to £80,000 discount

• Largest lorries (26t+): up to £120,000 discount

This level of support significantly bridges the gap between the typically higher purchase price of electric HGVs and conventional diesel vehicles, helping businesses access the long‑term savings that come with lower running costs.

Wider Green Freight Investment

The funding boost sits within a broader £318 million green freight investment plan, aimed at reducing costs for industry, cutting emissions, supporting jobs, and driving growth as the freight sector transitions to zero‑emission technologies.

In addition to expanding financial incentives, the government has launched a consultation on a regulatory roadmap to phase out the sale of new non‑zero emission HGVs by 2040. This long‑term clarity gives businesses confidence to plan electrification strategies and invest in zero‑emission fleets.