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Businesses and van drivers will continue to benefit from up to £5,000 off an electric van, as the Government has extended the Plug-in Van Grant until April 2026.
Originally set to end in April 2024, the Department for Transport (DfT) has confirmed that the scheme will receive part of a £120 million funding package to support the transition to electric vehicles.
The grant levels will remain unchanged, offering:
Since its launch in 2012, the DfT estimates that the scheme has helped sell over 80,000 electric and zero-emission vans across the UK.
Future of Roads Minister, Lilian Greenwood, stated:
"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 driving growth across the UK, putting more money in people’s pockets, and rebuilding Britain to deliver our plan for change."
However, the DfT has stated that all plug-in vehicle grants will remain under review to ensure the best value for taxpayers and could be withdrawn at any time without notice.
According to the Society of Motor Manufacturers and Traders (SMMT), battery electric van (BEV) sales rose for the fourth consecutive month in January, up 12.4% to 1,464 units, capturing a 7.6% market share.
Growth is expected to continue, with BEV registrations (up to 3.5 tonnes) forecasted to reach 33,000 in 2025, securing a 10.6% market share—although still below the 16% mandated target. Meanwhile, the overall van market is predicted to decline by 1.2% to 348,000 units.
Mike Hawes, SMMT Chief Executive, commented:
"The van market has performed strongly over the past two years, but businesses are facing economic pressures. Action is needed to drive fleet renewal and support the industry, which has invested significantly in developing new electric models. The review of the Zero Emissions Vehicle (ZEV) mandate must deliver practical regulations that reflect market realities and ensure the necessary infrastructure is in place to make fleet decarbonisation a commercially viable and attractive option."
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Johnsons Cars Limited is an appointed representative of ITC Compliance Limited which is authorised and regulated by the Financial Conduct Authority (their registration number is 313486) and which is permitted to advise on and arrange general insurance contracts. Johnsons Cars LTD is authorised and regulated by the Financial Conduct Authority for consumer credit activity and our registration number is 688450. Registered Name: Johnsons Cars Ltd. Registered Office: Empire Court, Albert Street Redditch Worcestershire B97 4DA. Registration No. 3716766 VAT Registration No. GB927551606
As an FCA regulated credit broker we can introduce you to a selected group of lenders / brokers (see below) who may be able to help you finance your purchase. This group of lenders / brokers provides us with a range of products which may be suitable for your purchase. We will explain the key features of those products to you.
Volkswagen Financial Services (UK) Limited, Evolution Funding Limited, Santander Consumer (UK) plc, Honda Finance Europe PLC, CA Auto Finance UK Ltd, Suzuki Financial Services Limited, Volkswagen Financial Services (UK) Limited, Hyundai Capital UK Limited, Stellantis Financial Services Uk Limited, Mazda Financial Services (UK) PLC, FCE Bank Plc, We are a credit broker and not a lender. We can introduce you to a limited number of lenders and their finance products, we act as their agent for this introduction. We are not an independent financial advisor; we will provide details of products available. We may advise you on the products, subject to your personal circumstances, though you are not obliged to take our advice or recommendation.
We do not charge you a fee for our services. we will typically receive commission from whichever lender we introduce you to (either a fixed fee or a fixed percentage of the amount you borrow).
Unless we consider it to be inappropriate given your personal circumstances, for certain vehicles e.g. New, our approach is to introduce you to the lender who are usually able to offer the best available package for you, taking into account interest rates, residual valuations (where applicable) and other contributions. If they are unable to make you an offer of finance, or the vehicle is not one that we would normally place with them we will introduce you to other lenders on our panel. The lender we introduce you to and available rates will depend upon a number of factors including: the vehicle, your personal circumstances and the likelihood of a lender to accept an application based on information provided.
Lenders typically pay a commission to us for introducing you to them, calculated by reference to the vehicle model or amount you borrow. Different lenders may pay different commissions for such introductions; some lenders may also provide preferential rates to us for the funding of our vehicle stock and also provide financial support for our training and marketing. But any such amounts they and other lenders pay us will not affect the amounts you pay under your finance agreement, all of which are set by the lender concerned. If you would like to know the amount of any remuneration we have received from the finance provider, please ask us.
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