Hauliers can get £120,000 discounts on greener lorries

Government adds £18m to Plug-In Truck Grant

Hauliers and fleet operators will access discounts of up to £120,000 on new electric trucks via an £18m increase in the Plug-in Truck Grant.

Similar to the government’s Electric Car Grant, the Plug-in-Truck Grant enables lorry operators to access savings of up to £120,000 when buying a new electric truck.

The grant remains in place until March 2026.

The new grant levels mean: 

• smaller trucks (4.25t to 12t) could save up to £20,000  
• mid-sized trucks (12t to 18t) up to £60,000 
• larger trucks (18t to 26t) up to £80,000 
• the largest lorries (26t and over) up to £120,000.

Minister for aviation, maritime and decarbonisation, Keir Mather, said: “We’re backing British businesses to go green by making electric lorries more affordable, helping hauliers to make the switch whilst turbocharging growth, investment and jobs in the sector. Our proposals will provide the certainty the industry has been calling for so that Britain becomes the best place for green investment.”

The move is part of a £318m plan for green freight.

The government has already invested over £120m as part of the zero-emission heavy goods vehicle and infrastructure demonstrator (ZEHID) programme to roll out more zero-emission lorries on UK roads.

Backed by the ZEHID fund, companies like Amazon and Marks & Spencer have started introducing electric delivery trucks in the UK, with ZEHID rolling out nearly 300 zero-emission HGVs by March 2026.

John Boumphrey, UK country manager at Amazon UK: “Amazon welcomes the government’s continued commitment to supporting the electrification of commercial fleets. The UK will be home to the largest number of electric heavy goods trucks in Amazon’s global transportation network and the first of our record-breaking order of eHGVs are already on the road.

“We’re investing to help the UK decarbonise and meet our goal of being net zero carbon by 2040. We look forward to continuing to work with the government to ensure the growth of more sustainable logistics.”

Alongside increased funding, the government has launched a consultation on the regulatory roadmap to phase out sales of new non-zero emission HGVs by 2040.

Responding to the announcement Lamech Solomon, Logistics UK’s head of decarbonisation policy, said: “The Plug-in Truck Grant is fundamental to the continued uptake of electric HGVs, and today’s announcement increasing the grant for electric HGVs up to £120,000 per vehicle is a welcome step forward that can help support the business case for industry to invest. However, with long procurement cycles, the sector needs certainty that these new rates will be maintained far beyond March 2026, so it has confidence to plan and invest: our recently published report highlighted that over 60% of industry respondents believed the government had not provided adequate funding to support the decarbonisation of their fleets. 

“Commercial and operational viability will always be the main driver for logistics operators and alongside the cost of buying new vehicles, one of the main barriers they still face to fleet electrification is the lack of charging infrastructure: 85% of operators who responded to Logistics UK’s recent survey expressed low confidence in the availability of suitable public charging and more than 80% disagree they can install chargers with sufficient capacity at their operating sites. The logistics sector is committed to decarbonising but needs the government to provide sufficient support to make this transition a realistic possibility for industry.

“These are the factors that need to be considered during the consultation, also announced today, regarding the regulatory roadmap to phase out sales of new, non-zero-emission HGVs. The voice of industry must be heard and government should work with our sector to create a viable pathway to decarbonisation that includes all viable technology routes, ensuring the goods that businesses and consumers across the country rely on, continue to move smoothly through the UK supply chains.”

Mike Hawes, chief executive of the SMMT, said: “Accelerating the HGV transition is vital for decarbonisation and expanding the Plug-in Truck Grant will help more operators to adopt zero-emission models. Manufacturers have already developed these technologies and are deploying them in many markets, despite hesitant demand.

“Moving from early adoption to mass market, however, means tackling major challenges: high upfront costs, difficult depot grid processes and limited suitable public infrastructure. An ambitious yet realistic strategy is essential – one that aligns regulation with incentives and infrastructure across all HGV types and powertrains, including low-emission goods vehicles. Crucially, it must reflect market realities and support operators facing tight margins, so the sector can decarbonise while continuing to drive the UK economy.”

Following the Plug-in Truck Grant announcement, Simon Smith, chief executive of Voltempo, said: “Today’s announcement is a welcome step forward for the UK’s road freight sector, signalling further momentum behind the electrification of heavy goods vehicles. 2026 is shaping up to be the year of the eHGV, and measures like the Plug-in-Truck Grant?give more fleet operators the confidence to start investing. But incentives alone won’t deliver mass adoption. What really matter is whether electric trucks make commercial sense day-to-day. 

“The challenge is total cost of ownership and operational reliability at scale. This is where public and private sectors must move together. Depot charging is at the heart of this transformation allowing operators to integrate ultra-rapid, secure, and predictable charging into live operations, maximising vehicle utilisation while creating additional revenue opportunities through controlled third-party access. By combining charging infrastructure with intelligent data management, operators can optimise energy use, reduce operational costs, and future proof for the next generation of fleets, including MCS-capable and autonomous vehicles. 

“Policy support remains crucial, but it must reflect the practical realities of commercial operations, including grid access, energy pricing, site security, and scalability. Progress will depend on close collaboration between government, industry and innovators like Voltempo harnessing British innovation to build infrastructure that works today and adapts for tomorrow.”