Government offers grants of up to £120k to support the uptake of electric HGVs
The government has announced a significant boost to support the uptake of electric heavy goods vehicles (HGVs) by extending and enhancing the Plug-in Truck Grant, offering discounts of up to £120,000 on new electric lorries for fleet operators and hauliers.
image: Amazon
An additional £18m in funding has been allocated to the scheme, running until March 2026, as part of a wider £318m green freight investment intended to accelerate the shift to zero-emission freight and stimulate growth in the sector.
Under the updated grant levels, savings vary by vehicle size: smaller trucks (4.25–12 t) could receive up to £20,000; mid-sized (12–18 t) up to £60,000; larger trucks (18–26 t) up to £80,000; and the heaviest lorries (26 t+), up to £120,000. The measure aims to lower the historically high upfront costs of electric HGVs, making them more financially accessible while also helping businesses benefit from lower running costs over time.
Transport and decarbonisation minister Keir Mather said the move would help businesses “go green” by making electric lorries more affordable, supporting investment, growth and jobs across the logistics industry, and providing the certainty the sector has sought to encourage long-term planning.
The government is also launching a consultation on a regulatory roadmap to phase out sales of new non-zero emission HGVs by 2040, a timeline designed to align with the UK’s broader net-zero goals.
Industry groups have welcomed the increase but urged clarity on longer-term funding beyond March 2026 to support fleet investment decisions. Logistics UK highlighted that sustained incentives will be vital for the widespread adoption of electric HGVs, given the lengthy procurement cycles in the haulage sector.
John Boumphrey, Amazon’s UK Country Manager said, “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.”
Alongside increased funding, the government will also launch a consultation on the regulatory roadmap to support the phase out sales of new non-zero emission HGVs by 2040.