Government cuts cost of electric lorries by up to £120,000 with extended grant funding

UK businesses that operate heavy goods vehicles now have a significant opportunity to save money and cut their carbon footprint thanks to an expanded government grant for electric lorries. The move is designed to support British companies to adopt cleaner transport, reduce operating costs and plan for future growth.

What the scheme offers

The UK government has increased funding for the Plug-in Truck Grant, which helps cover the upfront cost of new electric heavy goods vehicles (HGVs). Under the updated scheme, hauliers and fleet operators can save up to:

• £20,000 on smaller electric trucks (4.25 – 12 tonnes)
• £60,000 on mid-sized trucks (12 – 18 tonnes)
• £80,000 on larger trucks (18 – 26 tonnes)
• £120,000 on the largest lorries (26 tonnes and above)

These grants are available through to March 2026, giving businesses a limited but valuable window to reduce the cost of investing in zero-emission vehicles.

Why this matters for your business

Electric lorries typically cost more upfront than their diesel equivalents. However, once on the road they can deliver lower ongoing running costs, such as cheaper energy and reduced maintenance bills. By making the switch, businesses may see savings over time that support tighter margins, fleet upgrades or expansion plans.

How this supports business growth

The scheme is part of a wider £318 million green freight investment programme aimed at reducing emissions while boosting economic growth and jobs. Government ministers say the increase in funding responds to industry calls for certainty so businesses can plan with confidence into the future.

Next steps for businesses

If your business uses or plans to use heavy goods vehicles, it is worth considering whether an electric truck could fit your fleet and growth strategy. Speak to suppliers about models eligible for the Plug-in Truck Grant and find out how much you could save based on the size of vehicle you need.

You can also talk to a Business Growth West Midlands Adviser for help exploring how this scheme could support your investment plans, reduce costs and build long-term resilience.

In short, this is a chance for West Midlands businesses to save on electric transport, boost efficiency and support long-term growth while cutting emissions. Don’t miss out before the scheme closes in March 2026.