The UK government has also announced a consultation on plans to phase out internal combustion engine-powered truck sales by 2040. By Stewart Burnett
The UK government has announced an additional £18m (US$24.2m) in funding for the Plug-in Truck Grant, extending the scheme until March 2026 and increasing maximum discounts to £120,000 for the biggest electric trucks. The funding forms part of a £318m green freight investment aimed at reducing upfront vehicle costs, supporting the freight sector’s transition away from the internal combustion engine.
Under the revised system, UK grants now offer savings of £20,000 for trucks between 4.25 and 12 tonnes, £60,000 for mid-sized vehicles from 12 to 18 tonnes, £80,000 for larger lorries spanning 18 to 26 tonnes, and £120,000 for the heaviest category exceeding 26 tonnes. The subsidy operates through dealers and truckmakers who claim the grant and deduct the discount from sticker prices at the point of sale, effectively eliminating the need for operators themselves to file paperwork.
Companies including Amazon and Marks & Spencer have already deployed electric delivery trucks supported by government programmes. Amazon UK boss John Boumphrey confirmed that Britain will host the largest concentration of electric heavy goods trucks within the company’s global transportation network, in no small part due to local incentives.
Still, cost is not the only barrier to e-truck adoption. Limited charging infrastructure and associated grid capacity limits, as well as connection costs and planning delays all continue to limit the feasibility of electrification for many hauliers. Industry surveys have persistently indicated low confidence in both public charging availability and depot installation capabilities, despite e-trucks typically offering lower daily running costs than their diesel-powered counterparts.
In a statement, Minister for Aviation, Maritime and Decarbonisation Keir Mather said: “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. Our proposals will provide the certainty the industry has been calling for so that Britain becomes the best place for green investment.”
The government also announced it will launch consultation on a regulatory roadmap to phase out sales of new non-zero emission HGVs by 2040. As it stands, 100% adoption is a long way off: only approximately 2% of new HGVs sold in the UK are currently battery-electric.