The government has extended its popular plug-in van grant for a further two years, offering savings of up to £16,000 against a new electric van until 2025.
Confirmed by the Department of Transport, the extension also clarifies new eligibility criteria. From 1 April 2022, the threshold to claim the small truck grant of up to £16,000 will be increased from 3.5 tonnes to 4.25 tonnes. Vans up to 4.25 tonnes will be able to claim the large van grant of up to £5,000.
With the increasing number of large vans on the market, the move will ensure government targets support where it’s most needed, allowing for heavier and more costly trucks, up to 12 tonnes, to benefit from the higher grant funding.
The grants process is managed by the supplying dealer or manufacturer, which means that those leasing new electric vans will simply see a more competitive monthly payment. The grant is taken from the list price of the vehicle, with the savings passed on in reduced rates.
Transport Minister Trudy Harrison said:
”When it comes to clean business, this government means business. We are backing a generation of green growth for our thriving fleet sector. As demand for electric vehicles continues to grow at speed, this extension to our grant scheme will allow tens of thousands more vans to be purchased, transporting goods in a way which is kinder to our environment. This will support our vital, ongoing work to clean up our air in towns and cities right across the country and build back greener.”
Last year, industry figures showed the UK had the highest number of plug-in electric vans sold in Europe, with grant applications quadrupling compared to 2020. Existing grants have supported the purchase of more than 26,000 electric vans and heavy goods vehicles across the UK since the programme launched in 2012.
The two-year extension to the PIVG grant and the switch to greener vehicles supports the government’s climate change and air quality commitments. Nearly 5% of the UK’s CO2 emissions currently come from vans.
Supporting the switch to electric vehicles, the government has committed £2.5 billion to vehicle grants and charge point infrastructure to date, with plug-in vehicle grant schemes supporting the purchase of over 450,000 ultra-low emission vehicles, including cars, across the UK – including more than 300,000 zero-emission vehicles.
The government has also taken the opportunity to confirm that the current scheme that allows drivers holding standard car driving licences to drive electric goods vans at a higher weight limit, up to 4.25 tonnes (compared to a 3.5 tonne limit for diesel vans) will continue. This is important as, thanks to heavy battery packs to power the vans, electric vehicles tend to be significantly heavier. By retaining the higher limit for electric vans, it allows more drivers to benefit from emissions-free driving.
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