UK to cut costs of electric lorries by up to £120,000

Hauliers and fleet operators will access discounts of up to £120,000 on new electric trucks thanks to an additional £18 million announced by the government on Tuesday (6 January) to increase the Plug-in Truck Grant until March 2026.

The move is part of a £318 million plan for green freight, which is backing British businesses by slashing upfront costs on new lorries and helping businesses to access the lower running costs. 

Similar to the government’s Electric Car Grant, which has saved over 45,000 drivers up to £3,750 when making the switch, the Plug-in-Truck Grant enables lorry operators to access savings of up to £120,000 when buying a new electric truck.

New grant levels mean: 

• smaller trucks (4.25t to 12t) could save up to £20,000  
• mid-sized trucks (12t to 18t) up to £60,000 
• larger trucks (18t to 26t) up to £80,000 
• and the largest lorries (26t and over) up to £120,000

The funding is set to increase zero emission truck sales to support delivery of the UK’s climate obligations and comes as the government has already invested over £120 million as part of the zero emission heavy goods vehicle (HGV) and infrastructure demonstrator (ZEHID) programme to roll out more zero emission lorries on UK roads.

Backed by this fund, companies like Amazon and Marks & Spencer have already rolled out more electric delivery trucks on UK roads, with ZEHID rolling out nearly 300 zero emission HGVs by March 2026.

Day-to-day running costs can already be lower for electric lorries compared to their diesel counterparts, but upfront vehicle costs are typically higher. The increase to the Plug-in Truck Grant will help businesses access those daily savings, cutting costs for businesses as well as emissions.

“We’re backing British businesses to go green by making electric lorries more affordable, helping hauliers to make the switch whilst turbocharging growth, investment and jobs in the sector,” said Minister for Aviation, Maritime and Decarbonisation Keir Mather.

“Our proposals will provide the certainty the industry has been calling for so that Britain becomes the best place for green investment.”

Now read: Big blow for electric cars in London