£1bn to help firms move to greener vans and trucks

Government unveils Zero Emissions Truck and Van grants and boosts Depot Charging Scheme

The UK government has announced a £1 billion funding pot to help businesses make the switch to electric vans and trucks. 

The Zero Emissions Truck and Van grants and the Depot Charging Scheme (DCS) aim to tackle upfront costs and access to charging, which have been identified as major barriers to businesses making the switch to EVs.

The government also recognises that global fuel price uncertainty is challenging for businesses, so hopes these grants will support industry to switch to electric, helping to reduce exposure to fuel price uncertainty.

The truck grant will offer savings of up to £81,000 off the heaviest zero-emissions trucks, covering up to 40% of the cost. The van grant will continue to offer discounts of up to £5,000 off the cost of electric vans.

On top of that, businesses and public authorities could save up to £1m when installing charging infrastructure for vans, coaches, and eHGVs via a £170m boost to the government’s Depot Charging Scheme. The scheme would cover up to 70% of installation.

Aviation, maritime and decarbonisation minister Keir Mather said: ”This £1 billion investment cuts cost for British businesses, supports jobs, cleans up our roads, and gives operators protection against shifting global fuel prices.

“The logistics sector is the backbone of the UK economy, worth £170 billion and supporting 2.7 million jobs. We’re helping them expand and decarbonise their fleets whilst saving them cash, driving growth up and down the country.”

The new funding comes after the government announced an £18m uplift in January to slash up to £120,000 off the cost of green lorries, making it cheaper for businesses to go electric, with companies like M&S and Wren Kitchens and Bedrooms taking advantage of funding to decarbonise their fleets and reduce operational costs.

Lee Holmes, transport and logistics director at Wren Kitchens and Bedrooms, said: “Government investment gives businesses like Wren the confidence to accelerate fleet decarbonisation while maintaining operational stability, even in periods of economic uncertainty.

“With this support, we’ve brought a number of 44-tonne e-trucks into our fleet alongside a rapid charging infrastructure, reducing our reliance on traditional fuels and strengthening resilience and reliability against ongoing market volatility.”

Julian Bailey, head of group transport at M&S, said: “In 2021, we set ourselves the ambitious target of becoming a net zero business across our value chain by 2040. Since then, we’ve made some great progress, which includes the onboarding of 24 battery electric vehicles across our transport fleet. We welcome this investment which serves as a reminder of the importance of the logistics sector in the UK and its role in decarbonisation.” 

Responses 

Toby Poston, BVRLA chief executive, said: “The Depot Charging Scheme is playing a vital role in helping fleet operators and rental companies to install affordable, reliable charging infrastructure at their depots. The vehicle rental sector faces one of the most challenging paths to decarbonisation, and this additional support for depot charging will play a major role in building confidence. It will encourage more rental operators ­– particularly SMEs – to electrify at scale, reduce costs, and contribute to the UK’s net zero goals.”

James Charnock, interim managing director, Renault Trucks UK & Ireland, said: “As a pioneer in decarbonised transport across both trucks and vans, we welcome this announcement as exactly the boost the industry has been waiting for. By directly addressing the critical barriers of high upfront costs and infrastructure investment, the government is enabling operators to move forward with greater confidence.

“The Zero Emission Truck and Van grants and the Depot Charging Scheme will help unlock the business case for fleet electrification, accelerating the transition from ambition to action. For operators, switching to electric is no longer just an environmental imperative, it is a strategic opportunity for sustainable growth, improved total cost of ownership over time and long-term competitiveness. We look forward to working closely with partners across the value chain to ensure this momentum translates into real-world deployment at scale.”

Chris Morrison, chief executive of Fleete Group, said: “Fleete is investing private capital to build out low-cost nationwide charging infrastructure for electric trucks. To build more infrastructure, we need to know there will be enough electric trucks on the road, and this happens when the electric trucks are competitive with diesel.

“With the new Zero Emissions Truck and Van grant announced today that is a reality. The grant helps bridge the gap until innovation and scale can drive costs down further to a point where the subsidy is not needed. Our latest Total Cost of Ownership calculator incorporates the new grant and latest diesel price showing that it is now as cost-effective buying an electric truck as a diesel truck.”

Rhian Burrell, managing director, Vertellus, said: “This latest investment in depot charging and vehicle support is a significant step towards enabling fleet operators to shift to electric trucks when it makes operational and commercial sense, creating the right conditions for faster, more practical adoption at scale. Through our EV Discovery Programme, we’re already supporting customers on this journey, and these measures will help more fleets move from trial to full rollout.”

Simon Smith, chief executive, Voltempo, said: “Today’s announcement from the Department for Transport is welcome news and exactly what the UK’s road freight sector needs. This significant extension and strengthening of the Plug-in Truck Grant and Depot Charging Scheme sends a clear signal that the transition to zero-emission HGVs is now moving into a significant delivery phase.

“This is where government backing and private sector investment must work hand in hand. The direction of travel is clear, and the focus now is on making electrification work at scale, in real-world operations and that will not be solved by incentives alone. For operators, the test is straightforward. Can electric trucks run reliably, at the right cost, within existing logistics models? If they can, adoption will accelerate quickly.”

Russell Olive, UK director at vaylens, said: “This is a package that reflects how businesses actually start the switch to electric - by tackling vehicle costs and depot charging together. But even with this backing in place, the real challenge is making electrification work in real time. Installing chargers and buying vehicles is only the starting point.  

“What also matters is understanding how vehicles are actually used, how charging demand builds across the depot and wider network, how costs fluctuate, and how to manage all of that in practice. Without that visibility, there’s a risk that infrastructure and vehicles won’t align with operational needs, which could end up slowing progress.” 

Michael Braybook, managing director, Zaptec UK, said:  “Today’s £1 billion commitment from the UK government is a decisive step towards tackling two of the biggest barriers facing fleet electrification: upfront costs and access to reliable charging infrastructure. By supporting both zero-emission vehicles and depot charging, this package gives businesses the confidence to accelerate their transition while protecting themselves from volatile fuel prices. At Zaptec, we see first-hand how scalable, cost-efficient charging at depots can unlock electrification at pace. The focus now must be on speed and simplicity of delivery.”