The UK government has announced new funding that cuts the upfront cost of electric lorries by up to £120,000, supporting businesses to switch to zero-emission freight while reducing long-term operating costs
The UK government has announced a major expansion of support for zero-emission freight, cutting the upfront cost of electric lorries by up to £120,000 for businesses. The move, delivered through enhanced Plug-in Truck Grants, is designed to help hauliers and fleet operators invest in electric vehicles, lower running costs, and reduce carbon emissions, while giving the industry greater certainty over the transition to cleaner transport.
Supporting hauliers with lower-cost, low-emission delivery fleets
The Plug-in Truck Grant initiative is part of a broader strategy to position the UK as a leader in sustainable logistics. By investing in zero-emission freight, the government not only aims to meet its ambitious carbon reduction targets but also to stimulate innovation and job creation within the green technology sector. This approach underscores the country’s commitment to cleaner air, healthier communities, and a more resilient supply chain amid evolving climate challenges.
The investment forms part of a £318 million plan for green freight, supporting eligible UK-based businesses to cut upfront costs on new lorries and access lower running costs, to reduce emissions and costs.
The new grant levels mean that:
- smaller trucks (4.25t to 12t) could save up to £20,000
- mid-sized trucks (12t to 18t) up to £60,000
- larger trucks (18t to 26t) up to £80,000
- and the largest lorries (26t and over) up to £120,000
Minister for Aviation, Maritime and Decarbonisation, Keir Mather, said: “We’re backing British businesses to go green by making electric lorries more affordable, helping hauliers to make the switch whilst turbocharging growth, investment and jobs in the sector.
Our proposals will provide the certainty the industry has been calling for so that Britain becomes the best place for green investment.”
Amazon, Marks & Spencer and more to benefit
Backed by this fund, eligible companies like Amazon and Marks & Spencer have introduced more electric delivery trucks on UK roads, and ZEHID, an eligible operator, has committed to nearly 300 zero-emission HGVs by March 2026.
John Boumphrey, UK Country Manager, Amazon UK: “Amazon welcomes the government’s continued commitment to supporting the electrification of commercial fleets. The UK will be home to the largest number of electric heavy goods trucks in Amazon’s global transportation network, and the first of our record-breaking order of eHGVs is already on the road.
We’re investing to help the UK decarbonise and meet our goal of being net zero carbon by 2040. We look forward to continuing to work with the government to ensure the growth of more sustainable logistics.”
Day-to-day running costs are lower for electric lorries than for their diesel counterparts; however, upfront vehicle costs are typically higher. The increase to the Plug-in Truck Grant will help businesses access those daily savings, cutting costs and emissions.
The UK Government will also be launching a regulatory roadmap to phase out the sale of new non-zero-emission HGVs by 2040. Industry stakeholders are urged to proactively engage with these changes and seize the opportunity to invest and futureproof their businesses.
