The UK government has confirmed a £1 billion investment package to assist businesses in transitioning to electric delivery vans and trucks. Channeled through the Zero Emissions Truck and Van and Depot Charging Scheme, the funding aims to reduce upfront costs and stimulate economic growth within the logistics sector.
Under the revised subsidy structure, the government will cover up to 40% of the purchase price for electric trucks. Grants are now capped at £81,000 per vehicle for the largest models, a reduction from the previous £120,000 limit for vehicles over 26 tonnes. Electric van subsidies remain available at up to £5,000 per unit. Additionally, the Depot Charging Scheme received a £170 million boost, allowing organisations to claim up to 70% of installation costs, capped at £1 million per application.
Keir Mather, Minister for Aviation, Maritime, and Decarbonisation, stated:
“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.”
Industry representatives from Wren Kitchens and M&S welcomed the move. Lee Holmes of Wren Kitchens noted that the investment provides “the confidence to accelerate fleet decarbonisation while maintaining operational stability.” The funding follows an £18 million budget increase earlier this year, reflecting the government’s commitment to the 2040 net-zero value chain target. Full details on eligibility are available at gov.uk.
Source: Electrive
