A massive £1bn boost is now available to help British businesses overhaul their logistics with significant grants for zero-emission vans, heavy trucks and essential depot infrastructure. Through the
A massive £1bn boost is now available to help British businesses overhaul their logistics with significant grants for zero-emission vans, heavy trucks and essential depot infrastructure.
Through the Zero Emission Truck and Van grants, companies can now cover up to 40% of the cost for heavy vehicles – saving as much as £81,000 per truck – while securing up to £5,000 off new electric vans.
A key pillar of the package is the new Depot Charging Scheme, offering businesses and public authorities up to £1m to install the high-powered infrastructure needed for vans, coaches and HGVs.
The Department for Transport said the new grants would tackle two of the biggest barriers to businesses making the switch – upfront costs and access to charging.
Ministers added that the £1bn boost would help to build resilience against fuel price uncertainty amid the ongoing Middle East conflict.
Decarbonisation Minister Keir Mather said: “This £1bn 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 BVRLA welcomed the extra funding for the Depot Charging Scheme, which is playing a vital role in helping fleet operators and rental companies to install affordable, reliable charging infrastructure at their depots.
Toby Poston, BVRLA chief executive, added: “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.”
And Jonny Berry, head of decarbonisation, innovation & strategy at Novuna Vehicle Solutions, said: “This is exactly the kind of backing fleets have been waiting for. Depot charging is where electrification either works or falls apart especially for van and HGV operators dealing with real-world constraints like grid capacity, site complexity, and tight operational windows. The challenge has never been intent, it’s been delivery.
“If delivered well, this has the potential to accelerate depot electrification at a pace the industry hasn’t seen before.”
Lisa Brankin, MD Ford of Britain and Ireland, welcomed the extension of grant funding for electric vans and said it was the “the right move which will help more businesses make the switch to electric”.
But she warned: “Many of our customers face significant barriers to the cost savings electric vehicles can offer. Access to affordable public charging remains limited, and fully electric vans still are unsuitable for many commercial businesses and drivers.
“For some customers, plug-in hybrids can make an immediate difference by cutting CO2 emissions for those who would otherwise stick with diesel, whilst giving those with demanding vehicle needs a practical way to begin their transition to electric. If we want to bring everyone along on the journey to zero emissions, we need solutions that work in the real world today.”
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, covering up to 70% of the cost, when installing charging infrastructure for vans, coaches and eHGVs, thanks to a £170m boost to the Government’s Depot Charging Scheme.
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 such as M&S and Wren Kitchens and Bedrooms taking advantage of funding to decarbonise their fleets and reduce operational costs.
Michael Braybook, managing director at Zaptec UK, said: “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.”
Venson Automotive Solutions welcomed the £1bn investment, describing it as a “significant and timely boost” for fleet operators, particularly SMEs facing cost pressures and fuel price volatility.
But it’s urged businesses not to view funding alone as a silver bullet.
Simon Staton, client management director, commented: “This level of investment is a step forward and will make electric fleets more financially accessible, particularly for small and medium-sized businesses that have been hesitant due to upfront costs.
“But funding is only one part of the equation. To fully realise the benefits, fleets need a clear strategy around vehicle suitability, charging infrastructure and whole-life cost management. Fleet managers and businesses operating fleets must carefully assess operational needs, including mileage patterns, payload requirements and duty cycles to ensure EVs deliver expected savings and performance.
“Electrification is not a like-for-like switch. Without proper planning, businesses risk higher downtime, inefficient charging or vehicles that are not fit for purpose.”
Depot charging support will be key in enabling these businesses to take control of their energy usage and reduce long-term operating costs, but Venson has warned that installation, grid capacity and site planning must be carefully managed.
Staton finished: “With global fuel prices continuing to fluctuate, this funding creates a real opportunity and those who take a strategic approach now will see the greatest operational and financial benefits in the years ahead.”
