Government Grant for Electric Lorries: Boost for UK Businesses

Support for electric trucks is not new, but until recently it was limited in scale.

Earlier versions of the Plug-in Van and Truck Grant capped support at around £16,000–£25,000, which barely dented the price gap between diesel and electric HGVs. As a result, adoption remained largely confined to pilots and demonstrations.

Alongside this, government invested more than £120 million through the Zero Emission HGV and Infrastructure Demonstrator (ZEHID) programme, backing almost 300 electric HGVs on UK roads by 2026 with operators including Amazon and Marks & Spencer. These trials proved electric HGVs can work but cost remained the main barrier.

Recent Changes to the Government Grant for Electric Lorries

From 6 January 2026, the enhanced Plug-in Truck Grant offers significantly higher discounts:

• 4.25–12 tonnes: up to £20,000

• 12–18 tonnes: up to £60,000

• 18–26 tonnes: up to £80,000

• 26 tonnes+: up to £120,000

The £18m top-up extends the scheme until March 2026 and aligns with a consultation on phasing out sales of new non-zero-emission HGVs by 2040. Together, these signals provide stronger confidence for fleet investment decisions.

Future Outlook for the Government Grant for Electric Lorries

The grant is designed to bridge the upfront cost gap so operators can access the lower day-to-day running costs of electric trucks particularly on predictable, regional and urban routes.

Looking ahead, the proposed 2040 phase-out roadmap is expected to shape:

• Vehicle procurement cycles

• Depot charging and grid upgrades

• OEM product availability and residual values

For businesses planning fleet replacements over the next 1–5 years, this direction of travel is hard to ignore.

Impact of the Government Grant

Logistics, haulage and distribution
Lower capital costs improve payback periods when combined with cheaper energy and reduced maintenance. The grant makes multi-vehicle pilots more viable, not just one-off trials.

Retail, e-commerce and FMCG
Major brands can scale electric HGV deployments to support Scope 3 targets and low-carbon delivery promises. Contract logistics providers will increasingly be expected to offer cleaner transport options.

Manufacturing and industrials
High-volume freight users can decarbonise shuttle movements between plants, warehouses and ports strengthening bids where ESG performance matters.

SME fleets and regional operators
For smaller hauliers, the grant could unlock first electric HGV purchases, though depot power upgrades and post-2026 certainty remain challenges.

What Businesses Can Do Now 

To make the most of this window:

• Map routes by distance, payload and dwell time to identify early electrification opportunities

• Engage early with DNOs, landlords and local authorities on grid capacity

• Align electric HGV plans with wider net-zero and Scope 3 strategies

• Use grant-supported pilots to build operational confidence before scaling

Support is available through our programmes to map the carbon reduction benefits to your organisational carbon reduction plan, such as  SBS Net-Zero Program, Supply Chain Program, and SBS Compliance to integrate fleet decisions into wider sustainability plans.

Final Thoughts

This enhanced grant materially shifts the economics of electric HGVs. While infrastructure and long-term policy certainty still matter, the direction is clear.

For UK businesses, the question is no longer if electric lorries make sense but where and how fast you can deploy them.

If you want to explore what this means for your fleet, Contact Page our team or join the SBS Community to learn from others already making the transition.