The UK government has extended the Plug-in Van Grant (PIVG) discount available on most electric vans once again. The grant will now continue until at least the end of the 2026/2027 financial year, which represents a 12-month extension over the previously stated end point.
However, while the extension has been confirmed, the Department for Transport (DfT) has yet to state exactly how much the discounts will be. They currently sit at up to £2,500 for small vans and £5,000 for large vans. Some models straddle these categories, so different versions of the same van might be eligible for larger discounts depending on which one you go for, so you might save more by going for a more expensive vehicle.
There are also grants for trucks, with small trucks able to claim up to £16,000 and buyers of large trucks eligible for as much as £25,000. The DfT has said simply that the levels for the 2026/27 financial year will be ‘confirmed in due course.’
Funding for the scheme comes as part of a £650m ‘Plan for Change’ initiative that is, in part, looking to make it cheaper to buy electric vehicles. This has also seen a £63m package to help improve the country’s charging infrastructure. This includes a scheme that will aid businesses install charging points at depots, as well as helping homeowners without a driveway get channels built so they can run a cable across a pavement safely without creating a trip hazard. It will also improve signage on major roads, allowing drivers to identify nearby fast-charging hubs.
There is some inconsistency to the government’s approach, though, as new-electric-van buyers now pay vehicle excise duty (VED – also known as road tax) at the same rate as conventional vans as of April 2025. This is due to van tax changes also introduced in the 2024 Budget.
Plug-in van grant to continue
Despite a changing approach to electric car grants – the Plug-in Car Grant was scrapped in 2022 and then revived in 2025 as the Electric Car Grant – the van equivalent has remained in place for several years, albeit with some changes over time.
Under the 2025/2026 electric van grant rules, the maximum saving for 3.5-tonne electric vans is £5,000, while the maximum reduction for smaller vans up to 2.5-tonnes is £2,500. To stop big companies using up all the funding, there is a limit of 1,500 plug-in van and/or truck grants per business during the financial year.
The amounts you could claim were reduced in 2021 and are down from the previous £6,000 figure for large vans and £3,000 discount on small vans. Prior to this, all electrified vans up to 3.5 tonnes could save as much as £8,000 though the PIVG programme.
However, heavier electric vans such as those with 4.25-tonne ratings and ‘N2’ categorisation continue to qualify for the ‘small truck’ grant, which offers an incentive of up to £16,000 (capped at 20% of the purchase price).
It is of course worth stating that the discount is only applicable for new vans at the first point of purchase, so you can’t get a £5,000 saving on a used electric van.
There’s a full list of eligible vans further down this page.
Why has the government extended the Plug-in Van Grant?
Sales of electric vans are on the increase, but the rise is still not going fast enough to hit the government’s targets. As of July 2025 they account for just over 10% of sales, but this is some way short of the 16% that is required to hit the 2025 targets. Removing the incentive would make it even harder for manufacturers to convince van buyers to go electric.
As SMMT chief executive Make Hawes says: ‘Manufacturers continue to invest in delivering a diverse range of zero emission vans to suit every use case, and it’s encouraging to see uptake growing – but to meet mandated targets, it must grow faster.
‘Accelerating infrastructure rollout, streamlining planning processes and providing targeted support for fleet operators are essential to drive progress and keep the UK at the forefront of road transport decarbonisation.’
What is the electric Plug-in Van Grant?
The PIVG is a government-funded discount for vans that can drive with zero emissions – which is to say using an electric motor instead of a conventional diesel or petrol engine. To qualify for the plug-in grant the electrified van must now meet the following standards:
- 60 miles or more of zero emissions driving range
- Less than 50g/km CO2 emissions (50gCO/km, as the DfT has it)
This is a change from the previous requirements, which were set at 75g/km CO2 and allowed hybrid vans to have a 10-mile zero-emissions range; pure electric vans were already required to have a 60-mile range to qualify for the subsidy. The same requirements apply to the small and large vans, so there is no allowance given for the heavier vehicles.
How much is the electric van grant worth?
The PIVG is split into two main grant rates for vans, divided by gross vehicle weight (GVW).
As of the 2025/26 financial year, these are discount amounts:
- Vans less than 2.5 tonnes: 35% of purchase price up to £2,500
- Vans 2.5-4.25 tonnes: 35% of the purchase price up to £5,000
The number of grants per tax year is capped at 1,500 per customer. This applies to the end customer, and not leasing companies, but could impact large fleets, such as Amazon and DPD. The 1,500 number is a rise, though, as it was previously set at 1,000.
What about electric vans weighing more than 4.25 tonnes?
Heavyweight electric vans, which have a N2 classification rather than the lower N1 rating, can qualify for the ‘small truck’ grant. This plug-in incentive applies to all commercial vehicles 4.25-12.0 tonnes, and is worth up to £16,000 (previously £20,000), capped at 20% of the purchase price.
So buyers of these bigger vans could still be quids in, though the subsidy for this category is limited to 250 grants per financial year, with only 10 available per customer. After these are gone you can apply for the grant at the £5,000 rate.
Which vans are eligible for the Plug-in Van Grant?
The government publishes a list of grant qualifying vans, but it’s worth bearing in mind that the list on the DfT website is not always kept totally up to date, as it sometimes features vans that are no longer on sale. In any case, be reassured that every 100% electric van sold in the UK meets the latest criteria for the PIVG.
Small electric vans (up to 2.5t) that qualify for the Plug-in Van Grant:
- Citroen e-Berlingo
- Dacia Spring Cargo
- Fiat E-Doblo
- Ford E-Transit Courier
- Ford Transit Connect PHEV (short wheelbase)
- Maxus e Deliver 3 (short-wheelbase only)
- Mercedes-Benz eCitan
- Nissan Townstar
- Peugeot e-Partner
- Renault Kangoo E-Tech
- Toyota Proace City Electric
- Vauxhall Combo Electric
Large electric vans (2.5-4.25t) that qualify for the Plug-in Van Grant:
- Citroen e-Dispatch
- Citroen e-Relay
- DFSK EC31
- DFSK EC35 (categorised as a large van due to its 2,600kg GVW)
- Fiat E-Ducato
- Fiat E-Scudo
- Ford E-Transit
- Ford E-Transit Custom
- Ford Transit Connect PHEV (long wheelbase and Flex Cab)
- Iveco eDaily
- LEVC VN5
- MAN eTGE
- Maxus e Deliver 3 (long-wheelbase and chassis cab versions)
- Maxus eDeliver 5
- Maxus eDeliver 7
- Maxus e Deliver 9
- Maxus T90EV
- Mercedes-Benz eVito
- Mercedes-Benz eSprinter
- Nissan Townstar (crew van and L2 versions)
- Peugeot e-Boxer
- Peugeot e-Expert
- Promod L City
- Renault Kangoo E-Tech (long-wheelbase and crew van versions)
- Renault Master E-Tech
- Renault Trucks Master ZE
- Toyota Proace Electric
- Vauxhall Vivaro Electric
- Volkswagen e-Transporter
- Volkswagen ID.Buzz Cargo
Do hybrid vans qualify for the Plug-in Van Grant?
There are currently four proper hybrid commercial vehicles on sale in the UK: the Ford Transit Custom Plug-in Hybrid, Ford Transit Connect Plug-in Hybrid, LEVC VN5 and the Volkswagen Caddy eHybrid panel vans. All of these are plug-in hybrid electric vehicles (PHEVs), combining an electric motor with a petrol engine.
They have to meet strict requirements and must travel at least 60 miles on electric power alone and emit no more than 50g/km of CO2. The Toyota Corolla Commercial Hybrid van is not a plug-in hybrid, and will also not qualify for the PIVG.
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