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Industry welcomes government van grant funding and licence derogation announcement

Logistics UK warmly welcomed the government’s announcement last week (15 March 2022) that it would extend both its plug-in van grant and Category B licence derogation for alternatively fuelled vehicles, as well as upcoming changes to the plug-in van (PiVG) and truck grant (PiTG) weight thresholds.

“Given the current pressures on public finances, Logistics UK is pleased to see the government has heeded our calls to provide support to help the van sector meet net zero targets,” said Denise Beedell, Public Policy Manager at Logistics UK, “and that the level of funding within this announcement demonstrates a clear recognition of the importance of this essential sector.” 

The government’s announcement includes a decision to continue the Category B licence derogation for alternatively fuelled vehicles, which allows vans of this type with a Gross Vehicle Weight (GWV) of up to 4.25 tonnes to be driven on a standard car driving licence, compared to a 3.5 tonne limit for diesel vans, recognising the additional weight of the batteries. 

Beedell added: “The derogation is seen by van operators as a vital measure to support the decarbonisation of the van fleet; it will give commercial vehicle operators confidence in investing in zero emission technology. This announcement should also encourage more training providers to offer the compulsory five-hour training course required to be fully compliant before driving using the derogation. 

“Logistics UK is pleased that the Plug-in Van Grant will be extended to at least 2024/25; this certainty will help to support business planning for van operators. Although the amount of individual grants payable per van over 3.5t has reduced from £16,000 to £5,000, this reclassification within the grant thresholds means that operators purchasing alternatively fuelled vans up to 4.25t will now be eligible for up to one thousand plug-in van grants per year, instead of only 25 plug-in truck grants.” 


Published On: 24/03/2022 16:00:02


In brief


The rules for operating a van in an EU member state are changing in May 2022 and operators working internationally must be prepared to avoid costly consequences. To help operators understand how this legislation may affect their business, Logistics UK will be holding a free-to-attend Northern Ireland Van Operational Briefing, taking place on 1 April 2022 at the Corr’s Corner Hotel in Newtownabbey between 9.30am and 12pm.

*Book your place today

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