£1bn Funding Boost Announced to Support Electric Trucks, Vans and Charging Infrastructure

The UK government has unveiled a £1 billion funding package aimed at helping businesses transition to zero-emission vans and trucks, while also expanding charging infrastructure at depots.

The initiative combines the Zero Emission Truck and Van grants with an enhanced Depot Charging Scheme, targeting two of the main barriers to electrification: high upfront costs and limited access to charging facilities.

Under the scheme, businesses can receive significant financial support when purchasing electric vehicles. Discounts of up to £81,000 are available for the largest zero-emission trucks—covering as much as 40% of the purchase cost—while grants of up to £5,000 remain available for electric vans.

In addition, organisations installing charging infrastructure for vans, coaches or electric HGVs can access funding of up to £1 million, covering up to 70% of installation costs. This forms part of a £170 million expansion of the Depot Charging Scheme.

The government says the investment will not only reduce emissions but also help businesses manage exposure to volatile fuel prices, improving long-term operational resilience.

Transport Minister Keir Mather highlighted the importance of the logistics sector—worth £170 billion to the UK economy and supporting millions of jobs—stating that the funding will support both growth and decarbonisation across the industry.

Major companies have already begun taking advantage of similar schemes. Wren Kitchens has introduced electric heavy goods vehicles alongside rapid charging infrastructure, while Marks & Spencer continues to expand its fleet of battery electric vehicles as part of its net zero ambitions.

The announcement builds on previous funding initiatives, including a recent £18 million uplift aimed at reducing the cost of electric lorries by up to £120,000.

Alongside support for businesses, the government is continuing efforts to accelerate electric vehicle adoption more broadly. The Electric Car Grant has already helped tens of thousands of drivers transition to EVs, while over £600 million is being invested to expand the UK’s charging network.

Industry leaders have welcomed the additional funding, particularly the support for depot charging, which is seen as critical for enabling fleet operators—especially small and medium-sized businesses—to electrify at scale.