With the extension of the plug-in grant until April 2026, fleets will still be eligible for up to £5,000 off an electric vehicle.

The Department for Transport (DfT) stated today (Tuesday, February 25) that the cash incentive will receive some of the £120 million in government funding that was originally scheduled to expire in April.

The plug-in van grant, which offers up to £2,500 for light vans up to 2.5 tonnes and up to £5,000 for larger vans up to 4.25 tonnes, will also stay the same.

Since its introduction in 2012, the DfT believes that it has contributed to the sale of over 80,000 electric and zero-emission vans.

Along with modifications to driving licence requirements for heavier electric vans to bring them into step with their lighter petrol and diesel counterparts, fleets will welcome the ongoing financial support to aid with the transition.

According to Lilian Greenwood, minister of the future of roads, "Today we are making it easier, faster, and cheaper for people to switch to electric vehicles, from van drivers and businesses to drivers with accessibility needs, bikers, and cabbies."

"By successfully completing the shift to zero emissions, we're contributing to economic growth throughout the United Kingdom, increasing people's incomes, and rebuilding Britain to fulfil our change plan."

Chris Ashley, the Road Haulage Association's (RHA) net zero lead, praised the government's financial assistance for van drivers.

"This is a welcome boost to help those make the switch where they can," he said, adding that EV van sales are in danger of declining.

Additionally, the DfT said that it is giving up to £4,000 in incentives to taxi drivers so they can continue to migrate to electric vehicles for another year.

Additionally, the maximum on the grant for plug-in wheelchair accessible vehicles has been raised from £35,000 to £50,000, and bikers will still be eligible for a £500 government grant to purchase an electric motorbike for another year.

However, the DfT stated that all grants for plug-in vehicles will continue to be reviewed in order to provide the taxpayer with the "greatest value for money" and "may close without notice."

The Government's confirmation of a one-year extension to the plug-in van grant (PiVG) was hailed as a "positive step" by Matthew Dillon, head of commercial vehicles at Ayvens, the largest vehicle leasing company in the UK. This move highlights the critical role that financial incentives play in assisting commercial vehicle fleets in their transition to zero-emission alternatives.

Additionally, he applauded the elimination of the extra hours of driver training needed to operate larger alternative-fuel vehicles (AFVs).

"This is a positive move, alleviating some of the industry's uncertainty and empowering fleet operators to investigate the operational potential of electric commercial vehicles up to 4.25 tonnes," he stated.

Even if these announcements mark a significant advancement, many fleet operators might still hold off until the consultation is over in order to obtain more certainty.

To guarantee broad adoption, it will be crucial to provide precise guidelines regarding the MOT criteria for 4.25-tonne AFVs, as well as the related expenses and administrative ramifications.

The availability of vehicles, payload limitations, and the requirement for further infrastructure investment are among the other issues that still exist.

Nonetheless, the grant extension makes it clear to fleet operators managing the most vital fleets in the UK that the government is dedicated to helping them with their decarbonisation initiatives.

Aegis Energy co-founder Christopher Thorneycroft-Smith praised the decision to eliminate further training requirements and extend the plug-in grant for electric vans.

He declared, "It's a decisive step for the industry, which numerous industry bodies have been ardently advocating for over the past year."

But we also understand how critical it is to close the infrastructure gap for fleet operators in terms of dependable, easily available charging.

"This is another significant obstacle that needs to be addressed in addition to lowering the initial cost of vehicles in order to genuinely quicken the transition."