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Electric van boost as government grant for plug-in commercial vehicles extended

Business owners will be able to save thousands on new electric vans and trucks until 2027

Volkswagen ID. Buzz Cargo - front cornering

The plug-in van and truck grant (PVG) has been extended by the Government, meaning commercial vehicle drivers will be able to save money when choosing an EV for the next couple of years.

The Department for Transport has announced that the PVG – previously due to expire in 2026 – will remain until at least 2027, although exactly how many drivers will be able to make a claim is yet to be confirmed.

Currently, the Government scheme offers discounts of £2,500 for small vans (those under 2.5 tonnes), £5,000 for large vans (those weighing between 2.5 and 3.5 tonnes), £16,000 for small trucks (those between 4.25 and 12 tonnes) and £25,000 for large trucks (anything over 12 tonnes).

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With commercial transport accounting for more than a third of CO2 emissions on UK roads, and small businesses facing rising costs across the board, the announcement has been welcomed by Checkatrade’s CEO, Jambu Palaniappan, who described it as “a big boost for tradespeople across the UK”.

Palaniappan said: “Lower running costs, freedom from charges like ULEZ [London’s Ultra Low Emission Zone], and the ability to plan ahead with confidence – it all adds up to real, practical support.”

It’s worth pointing out that the plug-in van and truck grant is separate from the recently implemented Electric Car Grant (ECG); those utilising Auto Express’ Buy A Car service can benefit from the latter, saving £1,500 on the likes of the Volkswagen ID.3, Vauxhall Corsa Electric and even the new Renault 5.

Volkswagen ID. Buzz Cargo - chargeport

Consumers are not required to apply for either scheme; the discounts offered by both the PVG and ECG are automatically deducted from the price of the vehicle by the manufacturer.

Unlike the PVG, however, which provides a set amount depending on the size of the vehicle, the ECG instead utilises a tiered system, with the most eco-friendly vehicles, in theory, receiving the maximum grant of £3,750. No model has yet managed to achieve this, though.

Did you know you can sell your car through Auto Express? We’ll help you get a great price and find a great deal on a new car, too.

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Consumer reporter

Tom is Auto Express' Consumer reporter, meaning he spends his time investigating the stories that matter to all motorists - enthusiasts or otherwise. An ex-BBC journalist and Multimedia Journalism graduate, Tom previously wrote for partner sites Carbuyer and DrivingElectric and you may also spot him presenting videos for the Auto Express social media channels.

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