UK businesses can now access £1 billion in government funding to adopt electric trucks and vans and install depot charging infrastructure. The Zero Emissions Truck and Van grants and the Depot Charging Scheme aim to cut fleet costs, reduce emissions, and strengthen resilience against fuel price volatility, supporting the UK logistics sector’s move toward net zero.
Breaking down barriers to electrification
UK businesses are being offered this funding to accelerate the rollout of electric vans and trucks while expanding depot charging infrastructure. The initiative is designed to cut costs, support jobs, and reduce emissions across the logistics sector.
The funding is delivered through the Zero Emissions Truck and Van grants and the Depot Charging Scheme (DCS), addressing two major barriers to electrification: upfront vehicle costs and access to charging.
Investment: Reducing costs for UK businesses
Heavy zero-emission trucks can receive up to £81,000 in grants, covering up to 40% of the vehicle cost. Electric vans are eligible for up to £5,000 in savings.
Businesses and public authorities could also save up to £1 million when installing chargers for vans, coaches, and electric HGVs, with the government covering up to 70% of costs through the £170 million Depot Charging Scheme.
Aviation, Maritime and Decarbonisation Minister Keir Mather said:
“This £1 billion investment cuts cost for British businesses, supports jobs, cleans up our roads, and gives operators protection against shifting global fuel prices. The logistics sector is the backbone of the UK economy, worth £170 billion and supporting 2.7 million jobs. We’re helping them expand and decarbonise their fleets whilst saving them cash, driving growth up and down the country.”
Technology: Expanding Electric Fleet Capabilities
The funding supports adoption of electric vehicles and rapid charging infrastructure. Companies such as Wren Kitchens and Bedrooms have introduced 44-tonne e-trucks alongside charging facilities.
Lee Holmes, Transport and Logistics Director at Wren Kitchens and Bedrooms, said:
“Government investment gives businesses like Wren the confidence to accelerate fleet decarbonisation while maintaining operational stability, even in periods of economic uncertainty. With this support, we’ve brought a number of 44-tonne e-trucks into our fleet alongside a rapid charging infrastructure, reducing our reliance on traditional fuels and strengthening resilience and reliability against ongoing market volatility.”
Julian Bailey, Head of Group Transport at M&S, added:
“In 2021, we set ourselves the ambitious target of becoming a net zero business across our value chain by 2040. Since then, we’ve made some great progress, which includes the onboarding of 24 battery electric vehicles across our transport fleet. We welcome this investment which serves as a reminder of the importance of the logistics sector in the UK and its role in decarbonisation.”
What are the Zero Emissions Truck and Van grants?
The Zero Emissions Truck and Van grants reduce the upfront cost of electric vehicles:
- Truck grant: Up to £81,000 off the heaviest zero-emission trucks (up to 40% of the cost)
- Van grant: Up to £5,000 off electric vans
These grants tackle one of the biggest barriers to fleet electrification: the high initial cost of vehicles.
What is the UK Depot Charging Scheme (DCS)?
The Depot Charging Scheme (DCS) helps businesses and public authorities install charging infrastructure for vans, coaches, and electric HGVs. Funding covers up to 70% of costs, supported by a £170 million government investment.
Toby Poston, Chief Executive of the BVRLA, said:
“The Depot Charging Scheme is playing a vital role in helping fleet operators and rental companies to install affordable, reliable charging infrastructure at their depots. The vehicle rental sector faces one of the most challenging paths to decarbonisation, and this additional support for depot charging will play a major role in building confidence. It will encourage more rental operators – particularly SMEs – to electrify at scale, reduce costs, and contribute to the UK’s net zero goals.”
Industry Impact: Driving growth and jobs
The funding follows an £18 million uplift in January to further reduce costs for green lorries. Companies such as M&S and Wren Kitchens and Bedrooms have leveraged these grants to decarbonise fleets and reduce operational costs.
The government also supports wider EV adoption through the Electric Car Grant, which has helped over 80,000 drivers save up to £3,750. Over £600 million is being invested to expand charging infrastructure, building on more than 118,000 chargers already available nationwide.
By reducing costs and expanding charging access, the initiative strengthens business resilience while advancing the UK’s sustainability and net zero objectives.
