Westminster Policy News & Legislative Analysis

UK confirms £1bn for zero‑emission trucks, vans, depot charging

The Department for Transport and the Office for Zero Emission Vehicles have announced a £1 billion support package to bring down acquisition and infrastructure costs for commercial fleets. Published on 25 March 2026, the plan combines vehicle purchase grants with expanded depot charging support to tackle upfront costs and charging access-cited by ministers as the two principal barriers to adoption. (gov.uk)

Under the Zero Emissions Truck and Van grants, the heaviest zero‑emission trucks can attract up to £81,000 in support, capped at 40% of the vehicle cost, while new zero‑emission vans remain eligible for up to £5,000 off the purchase price. The government positions the measures as a hedge against fuel price volatility for logistics and delivery operators. (gov.uk)

Access to the vehicle grants is via the dealer at point of sale: buyers do not apply directly. OZEV pays approved claims to manufacturers through its portal, and the scheme applies only to new vehicles at first registration. Guidance also notes that annual caps for truck grants apply per end‑customer. These operational mechanics are set out in the updated OZEV documentation. (gov.uk)

There is a short‑term enhancement in place for heavy goods vehicles: on 6 January 2026 the government lifted Plug‑in Truck Grant levels until 31 March 2026, enabling discounts up to £120,000 for the largest lorries, with tiered support of £20,000, £60,000 and £80,000 for smaller weight classes. Officials framed this as part of a £318 million green freight programme. (gov.uk)

Depot infrastructure is addressed through a £170 million boost to the Depot Charging Scheme, offering businesses and public authorities up to 70% of eligible installation costs, capped at £1 million, for charging serving vans, coaches and electric HGVs. The department says this is intended to accelerate reliable, on‑site charging for fleet operations. (gov.uk)

For context, the 2025 pilot phase of the Depot Charging Scheme opened to public and private fleets, including local authorities and non‑profits, and required applicants to be registered fleet operators with site control (or landlord consent) and at least one battery‑electric van, HGV or coach on fleet or on order. That window closed on 28 November 2025 with works due by 31 March 2026; applicants should look for refreshed guidance reflecting the new funding. (find-government-grants.service.gov.uk)

Ministers also highlighted the separate Electric Car Grant, which provides up to £3,750 per eligible car and is administered through the plug‑in grant portal. The scheme was launched on 15 July 2025 and the portal guidance was updated on 6 January 2026; the government has stated funding is available until the 2028 to 2029 financial year. The department now cites over 80,000 drivers supported. (gov.uk)

Officials referenced wider charging investment alongside depot support. The government says it is spending over £600 million to accelerate the rollout of “hundreds of thousands” of chargepoints, with more than 118,000 already available, and notes that around one in four cars sold is now electric. (gov.uk)

Industry operators point to the cost‑reduction effect. Wren Kitchens reports integrating 44‑tonne electric trucks with rapid charging infrastructure, while Marks & Spencer cites the expansion of a battery‑electric fleet toward a 2040 net zero target. Both organisations welcomed the funding’s role in supporting reliability and decarbonisation goals. (gov.uk)

What this means for procurement teams is clear. Vehicle grant discounts are applied by sellers against invoice totals and hinge on eligibility at first registration, while depot funding parameters-and application windows-will be confirmed in updated DfT/OZEV guidance. For time‑sensitive fleet transitions, note the truck grant uplift runs to 31 March 2026, and plan purchases and registrations accordingly in consultation with dealers and OZEV materials. (gov.uk)