The UK Government’s plug-in van grant will continue during the 2025-26 financial year, it has been confirmed.

The full documents for today’s Autumn Budget state that £120 million will fund the scheme, which had only previously been confirmed for the 2024-25 financial year, as well as support the manufacture of wheelchair-accessible EVs.

Under the scheme, large electric vans weighing over 2.5t are currently eligible for a grant of up to £5,000, while vans weighing less than 2.5t are eligible for up to £2,500.

Reacting to the news, a spokesperson for the Zero Emission Van Plan – a coalition led by the BVRLA, and including Logistics UK, Recharge UK, the Association of Fleet Professionals (AFP), and The EV Café – said: “The extension of the plug-in van grant provides welcome relief to a sector facing an uphill battle to meet ambitious decarbonisation targets.

“Many van operators are seeking to kickstart their transition to zero-emission vehicles, with cost just one of the key barriers blocking their path.

“Extending the grant is a positive step but will not supercharge the transition by itself. Yesterday’s debate in Parliament about van electrification shows that the cross-sector Zero Emission Van Plan is gathering momentum. Its asks seeking increased fiscal support, improved charging and the removal of regulatory barriers are being heard by the people in the positions to make a difference.”