The UK government has unveiled a ÂŁ1 billion funding package aimed at accelerating the transition to zero emission commercial vehicles, targeting both vehicle purchase costs and depot charging infrastructure for fleet operators.
The Department for Transport confirmed the funding will be delivered through an extension of the Zero Emission Truck and Van grants, alongside a ÂŁ170 million expansion of the Depot Charging Scheme. The measures are intended to address two of the main barriers to adoption identified by operators: high upfront costs and limited access to charging infrastructure.
Under the revised grant structure, businesses can receive up to ÂŁ81,000 towards the cost of the heaviest zero emission trucks, covering up to 40% of the purchase price. The plug-in van grant will continue, offering up to ÂŁ5,000 off new electric vans.
In addition, businesses and public authorities will be able to claim up to ÂŁ1 million towards the installation of depot-based charging infrastructure for vans, coaches and HGVs, with funding covering up to 70% of project costs.
The announcement comes as operators continue to face volatility in global fuel prices, with the government positioning electrification as a route to reduce exposure to diesel cost fluctuations. The logistics sector contributes ÂŁ170 billion to the UK economy and supports around 2.7 million jobs.
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 funding follows an earlier ÂŁ18 million uplift announced in January, which provided discounts of up to ÂŁ120,000 on zero emission HGVs. Major operators including Wren Kitchens and Bedrooms and Marks and Spencer have already accessed previous funding to begin electrifying their fleets.
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.”
James Charnock, Interim Managing Director at Renault Trucks UK & Ireland, said the package addresses long-standing barriers to adoption.
“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, CEO of Fleete Group, pointed to the role of cost competitiveness in driving infrastructure investment.
“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 at Vertellus, said the measures would support wider rollout beyond pilot phases.
“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, CEO of Voltempo, said the announcement signals a shift towards delivery.
“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.
“At Voltempo, we see infrastructure as the deciding factor, delivering depot-based charging as part of a fully integrated solution that enables fleets to operate with certainty. Scaling eHGVs at pace depends on more than hardware alone; grid access, energy pricing, site readiness and long-term scalability are fundamental constraints that must be solved in parallel and will ultimately determine how quickly the sector can move.
“This is a crucial moment. The priority must now be execution; aligning infrastructure, energy and operations so that fleets can transition with confidence and at scale.”
Alongside commercial vehicle measures, the government said its Electric Car Grant has supported more than 80,000 drivers in purchasing electric cars, with savings of up to ÂŁ3,750 per vehicle.
More than ÂŁ600 million is also being invested in public charging infrastructure, building on a network of over 118,000 chargers currently in operation across the UK.