The government has recently announced a £1 billion funding package to expand its van and truck grant schemes and continue its depot charging scheme until 2030. We explore the recent changes
The UK government has confirmed a major £1 billion investment to expand its grants for electric commercial vehicles, as well as continue its depot charging scheme for longer.
A central element of the package is the grants for electric trucks which offer substantial financial support depending on vehicle weight.
Now with different funding levels for more vehicle sizes, the heaviest trucks – those over 26 tonnes – can receive up to £81,000, covering as much as 40% of the purchase cost.
Trucks between 18 and 26 tonnes are eligible for up to £52,000, while those between 12 and 18 tonnes can receive up to £37,000. Lighter trucks, weighing between 4.25 and 12 tonnes, can access grants covering 20% of the vehicle cost, up to £15,000. To qualify, all vehicles must produce zero tailpipe emissions and be capable of travelling at least 60 miles without emitting CO₂.
Support for electric vans also continues under the same scheme. Smaller vans weighing under 2,500kg are eligible for discounts of up to £2,500, while larger vans between 2,500kg and 4,250kg can receive up to £5,000. As with trucks, eligible vans must produce zero tailpipe emissions and meet a minimum zero-emission range of 60 miles.
Depot Charging
Alongside vehicle funding, the government is investing £170 million in its Depot Charging Scheme so it continues to 2030. The scheme is designed to support fleet operators in installing charging infrastructure at depots, covering up to 70% of installation and civil engineering costs. The programme will run from April 2026 through to 2030, with £66 million allocated across two application windows in its first year.
The first application window opened on 25 March 2026 and will close on 30 June 2026, or earlier if funds are fully allocated. Projects approved in this round must be completed by 31 March 2027, with funding capped at £1 million per organisation across all sites. A second application window will open in October 2026 for projects delivered in 2027/28.
Eligibility for depot funding requires organisations to operate in the UK, have been active for at least one year, and either already operate or plan to introduce battery-electric vans, HGVs, or coaches. Applicants must also own or lease depot facilities and commit to using the infrastructure primarily for commercial vehicles.
Giving fleets confidence
Fleet leaders have broadly welcomed the announcement, viewing it as a key step in boosting confidence among fleet operators and accelerating decarbonisation.
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."
Further support needed
However, some in the industry have emphasised that further measures will be essential to fully unlock the transition at scale.
Mike Hawes, SMMT chief executive said: "Confirmed longer term funding for zero emission vans and trucks, along with support for depot charging, is hugely welcome. Transitioning this sector depends on operator confidence to invest and government support is the clearest sign that ZEVs are the right choice.
"To accelerate the transition, however, such that ambitious mandated van sales targets are met and the ZEV truck market moves beyond its infancy, these measures must be complemented by enablers such as grid connection prioritisation, dedicated commercial vehicle charging infrastructure and regulation that reflects the diversity of operators’ uses and requirements."
Jarrod Birch, head of policy and public affairs, ChargeUK commented: "The direction of travel for trucks and vans is clear – electrification. We called for more enduring funding for electric trucks earlier this year and the Government has delivered. Combined with the funding for depot charging this will really help to tackle businesses' up-front costs when considering electrification.
"But running costs are just as important and Government has yet to deliver a solution to the policy driven costs which inflate the bills to charge these vehicles. There is a real danger fleet owners will invest in electrification only to be crippled by high standing charges when they are well down the road.
"The market requires a dedicated HGV infrastructure fund and relief for standing charges on depot charging to bring down the total cost of ownership and speed up adoption of cleaner trucks and vans.”
Overall, the £1 billion funding package represents a significant and timely boost for the UK’s transition to zero-emission commercial transport, especially during global fuel price uncertainty.