Plug-In Truck Grant – additional funding available

New funding from the UK Government is available to help operators acquire a zero emission HGV into their fleets. In practice, this means acquiring an electric HGV, though the terms of the funding allow for other “zero emission” vehicles to qualify – such as hydrogen fuel cell powered vehicles.

This increased funding is available until the end of the current financial year (2025/26).

What’s on offer?

The Government has increased the amount of subsidy available for acquiring an HGV that is “zero emission at the tailpipe”.

Different levels of subsidy are available according to the weight of the vehicle, as follows:

• up to £20,000 for an HGV over 4.25 and up to 12 tonnes
• up to £60,000 for an HGV over 12 and up to 18 tonnes
• up to £80,000 for an HGV over 18 and up to 26 tonnes
• up to £120,000 for an HGV over 26 tonnes

Grants are also capped at 40% of the upfront cost of the vehicle.

The above subsidies apply to operators registered within Great Britain only.

Existing grant levels and categories will continue for operators registered in Northern Ireland. Here, “small” HGVs weighing between 4.25 and 12 tonnes can receive up to £16,000 and “large” HGVs weighing over 12 tonnes up to £25,000.

How to apply for this subsidy?

The subsidy is administered via the Plug-in Truck Grant scheme. In simple terms, when you place an order for an “eligible vehicle” with a vehicle dealer or manufacturer, the vehicle dealer or manufacturer will apply for the subsidy on your behalf and apply the subsidy to the price of the vehicle.

For information on how the Plug-in Truck Grant works, see: https://www.gov.uk/government/publications/plug-in-van-grant/plug-in-van-and-truck-grant-eligibility-and-applications

What are the “eligible vehicles”?

The list of “eligible vehicles” where you can apply for the subsidy can be found here: https://www.gov.uk/plug-in-vehicle-grants/trucks

Is there a limit on how much subsidy I can get?

Yes. Information on applicable limits on how much subsidy you can receive can be found here: https://www.gov.uk/government/publications/plug-in-vehicle-grant-portal-guidance/using-the-plug-in-vehicle-grant-portal

Can I apply for a subsidy on more than one vehicle?

Yes – subject to the limits set by the Government. For more information on the limits, see: https://www.gov.uk/government/publications/plug-in-vehicle-grant-portal-guidance/using-the-plug-in-vehicle-grant-portal

Is there a deadline by which I must apply for the subsidy?

Yes. To take advantage of the subsidy on offer, you must place an order for an “eligible” vehicle by the end of the current financial year (2025/26).

Will similar funding be available in future financial years?

The Government has said that it will “provide an update on plans for future grants in due course”.

Can the Plug-in Truck Grant be used to help with charging infrastructure costs?

No.

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The RHA view

We welcome this funding from DfT. It is a positive step that tackles one of the biggest barriers operators face to decarbonise their fleets: upfront vehicle cost. It also demonstrates the Government’s commitment to help operators reduce emissions from their fleets.

However, we are equally clear on two things.

Firstly, this funding support must continue beyond the current financial year. We encourage you to apply for this funding by 5 April 2026 to demonstrate demand for similar funding beyond April 2026.

With regards to Northern Ireland, we understand that State Aid regulations were not able to accommodate Northern Ireland for this scheme. As part of our campaign for on-going funding support beyond April 2026, we will campaign to ensure Northern Ireland is included in future schemes.

For coaches, we will campaign to get qualifying coaches on to the list of “eligible vehicles” so that coach operators can benefit from this subsidy scheme.

Secondly, this funding support from the Government – on vehicle costs - is only one part of the decarbonisation “jigsaw”. Other work and support is needed on the charging/refilling infrastructure needed to power zero emission vehicles, and the RHA will continue to focus its efforts here too.

We will place this briefing note on the RHA website under the Net Zero section – see: https://www.rha.uk.net/Campaigns/Net-Zero - and keep it updated. You can also find further general information on how you can reduce emissions from your fleets via this link.