From NOT A LOT OF PEOPLE KNOW THAT
By Paul Homewood
I mentioned the Telegraph story the other, outlining government plans to ban petrol and diesel lorries by 2040.
the Telegraph reported that the Green Finance Institute has estimated £100bn worth of additional finance and subsidies would be needed to support electric lorry take-up.
By coincidence, I have just come across this press release from the Department of Transport, which seems to have gone under the radar:
- £18 million to slash up to £120,000 off the cost of green lorries, making it cheaper for businesses to go electric
- part of £318 million green freight investment to cut costs for industry and reduce emissions, delivering on the government’s promise to boost growth and support jobs
- government launches consultation on roadmap to phase out sales of new non-zero emission HGVs, giving industry certainty to plan for zero emission by 2040
Hauliers and fleet operators will access discounts of up to £120,000 on new electric trucks thanks to an additional £18 million announced by the government today (6 January 2026) to increase the Plug-in Truck Grant until March 2026.
The move is part of a £318 million plan for green freight, which is backing British businesses by slashing upfront costs on new lorries and helping businesses to access the lower running costs. This is all part of the government’s plan to reduce emissions while cutting costs, sparking growth and creating jobs as the sector moves to the technology of the future.
See the list of electric and hybrid vehicles eligible for a plug-in grant for more information.
Similar to the government’s Electric Car Grant, which has saved over 45,000 drivers up to £3,750 when making the switch, the Plug-in-Truck Grant enables lorry operators to access savings of up to £120,000 when buying a new electric truck.
New grant levels mean:
- 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
There are around half a million HGVs in the UK, so at an average of say £100,000 subsidy each, that adds up to £50 billion.
On top of that, of course, will be added the various other costs of charging infrastructure and so on, so the £100 billion suggested in the Telegraph is not unrealistic, if the subsidy is given for all HGV purchases.
What is clear is that there is no commercial justification for most hauliers to go electric. If there was, they would need bungs.
This latest plug-in grant is, of course, utterly inconsequential, as it will only be enough to fund 150 lorries at the top rate. Why should taxpayers be forced to hand money over to the likes of Amazon, who have welcomed the news and plan to grab as much cash as they can.
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