Businesses benefit from Plug-in Van Grant extension

Businesses received a boost from the Government this week, with an extension of the Plug-in Van Grant.

Announced by Future of Roads Minister Lilian Greenwood on 18 August 2025, the Plug-in van Grant is to be extended to April 2027 “at least”.

It is a further extension of the Plug-in Van Grant, announced earlier this year, to help traders, small businesses and commercial vehicle fleets make the transition to electric vehicles.

What are the grant levels for electric vans?

There are two levels of grant:

• Small vans less than 2,500 kilograms (kg) gross vehicle weight receive up to £2,500.
• Large vans between 2,500kg and 4,250kg gross vehicle weight receive up to £5,000

Electric vans up to 4.25t can be driven on a standard licence without the requirement for additional training that was previously in place until February 2025.

Full details of the eligible vans for the Plug-in Van Grant can be found here.

Announcing the grant’s extension, Future of Roads Minister Lilian Greenwood said:

“Extending these grants is another decisive step to power Britain’s transition to cleaner transport while backing the industries that keep our economy moving, driving new investment in EVs and helping businesses cut costs and expand.

“Every EV on our roads means healthier communities and new economic opportunities across the country, which is why grants like these are crucial to both accelerating that transition and building a resilient, competitive economy.”

The grant extension is hoped to provide commercial vehicle fleet operators the certainty to plan confidently for the transition to leasing electric vans. It builds on the Government’s ongoing commitment to help businesses save money and get the charging infrastructure required to make the switch to electric, following the £30 million investment announced in July to install over 3,000 new chargepoints at depots across the UK.

Growth in electric vans

In a market that has seen van registrations decline by over 12%, electric van take up is beginning to really take off, the SMMT reporting a near 53% increase in electric van registrations during the first half of 2025.

“The extension of the Plug-in Van Grant is really encouraging,” commented Rob Marshall, Operations Director of Gateway2Lease.

“We’re already seeing an uptick in electric van sales and the Government’s further support will help increase confidence to make the switch to electric vans. What's more, the new product and new brands we are seeing coming to market are much more suitable for operators, offering better range and payload.

“The combination of the grant and monthly leasing rentals makes running an electric van much more attainable now, while running costs are lower. We’re happy to provide help and expertise to those businesses that are considering the switch.”

For further assistance in switching to electric, call us on 01299 407 360 our leasing experts will be happy to help.