New electric truck grants are a positive signal, but long-term certainty needed

The government announced increases to the Plug-in Truck Grant for electric HGVs in Great Britain on 6 January, although it has only committed to retaining this level of funding until March this year.

The amendment also introduces four weight categories, replacing the ‘small’ and ‘large’ categories from previous years. Grants for small trucks (between 4.25 and 12 tonnes) have increased from £16,000 to £20,000.

The large truck category has been split into three new weight categories. Zero emission HGVs weighing between 12 and 18 tonnes can receive grants up to £60,000, those weighing between 18 and 26 tonnes can receive up to £80,000, and those weighing more than 26 tonnes can receive up to £120,000. Due to EU State Aid rules that apply in Northern Ireland, existing grant levels for small trucks (up to £16,000) and large trucks (up to £25,000) will continue with the aim to include Northern Ireland at a later date if the funding window is extended.

Responding to the announcement, Head of Decarbonisation Policy at Logistics UK Lamech Solomon commented about the scheme’s potential impact:

“The Plug-in Truck Grant is fundamental to the continued uptake of electric HGVs, and today’s announcement increasing the grant for electric HGVs up to £120,000 per vehicle is a welcome step forward that can help support the business case for industry to invest.

“However, with long procurement cycles, the sector needs certainty that these new rates will be maintained far beyond March 2026, so it has confidence to plan and invest: our recently published report highlighted that over 60% of industry respondents believed the government had not provided adequate funding to support the decarbonisation of their fleets.

“Commercial and operational viability will always be the main driver for logistics operators and alongside the cost of buying new vehicles, one of the main barriers they still face to fleet electrification is the lack of charging infrastructure: 85% of operators who responded to Logistics UK’s recent survey expressed low confidence in the availability of suitable public charging and more than 80% disagree they can install chargers with sufficient capacity at their operating sites.

“The logistics sector is committed to decarbonising but needs the government to provide sufficient support to ensure businesses can invest with confidence and make this transition a realistic possibility for industry.

“These are the factors that need to be considered during the consultation, also announced today, regarding the regulatory roadmap to phase out sales of new, non-zero emission HGVs.

The voice of industry must be heard and government should work with our sector to create a viable pathway to decarbonisation that includes all viable technology routes, ensuring the goods that businesses and consumers across the country rely on continue to move smoothly through the UK supply chains.”