Industry welcomes government van grant funding and licence derogation announcement

Tuesday 15 March 2022

In response to the government’s announcement on the extension of the plug-in van grant and Category B licence derogation, and upcoming changes to the plug-in van (PiVG) and truck grant (PiTG) weight thresholds, Denise Beedell, Public Policy Manager at Logistics UK, comments: 

“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, 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. 

Ms Beedell comments: “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 also should 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.” 

Logistics UK is one of the UK’s leading business groups, representing logistics businesses which are vital to keeping the UK trading, and more than seven million people directly employed in the making, selling and moving of goods. With COVID-19, Brexit, new technology and other disruptive forces driving change in the way goods move across borders and through the supply chain, logistics has never been more important to UK plc. Logistics UK supports, shapes and stands up for safe and efficient logistics, and is the only business group which represents the whole industry, with members from the road, rail, sea and air industries, as well as the buyers of freight services such as retailers and manufacturers whose businesses depend on the efficient movement of goods. For more information about the organisation and its work, including its ground-breaking research into the impacts of COVID-19 on the whole supply chain, please visit