£120 million for switching to electric transport

Electric vans being charged.

A £120 million investment package is set to benefit drivers, cabbies, and businesses by supporting them making the shift to cleaner vans, wheelchair accessible vehicles and taxis and removing financial barriers to entry.

The future of roads minister Lilian Greenwood confirmed today (25th February 2025) that the department will extend its Plug-in grant for another year to help van drivers and businesses make the transition to zero emission vehicles. 

This extension will allow businesses and van drivers to receive grants up to £2,500 when buying small vans up to 2.5 tonnes and up to £5,000 for large vans up to 4.25 tonnes. Since its launch, the Plug-in grant has already helped to sell 80,000 electric and zero emission vans since its launch.

Additional training required for electric van drivers is set to be scrapped, which will make it even easier for petrol and diesel van drivers to make the switch to a zero emission option. This will help businesses by taking away training costs and making it easier to hire drivers when operating electric vans.

Moreover, £4,000 is available for tax drivers wanting to buy a zero emission black cab, as well as £500 for motorcyclists who wish to buy an electric motorbike. The Plug-in wheelchair accessible vehicle grant cap is also increasing from £35,000 to £50,000, which gives consumers a wider choice of vehicles models and allowing for greater accessibility. 

This all comes part of the government’s £2.3 billion commitment to help industry and consumers switch to electric vehicles (EVs).

Future of roads minister Lilian Greenwood said: “From van drivers and businesses, to drivers with accessibility needs, bikers and cabbies, today we are making it easier, faster, and cheaper for people to switch to electric vehicles.

“By making the transition to zero emissions a success, we’re helping to drive growth all over the UK, putting more money in people’s pockets and rebuilding Britain to deliver our Plan for Change.”

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