The UK government has backtracked on plans to axe the Plug-in Van Grant, confirming that the scheme will now remain in place until 2026 as part of a £120 million funding package.

The initiative, which offers businesses and van drivers a discount on electric vans, was set to end in April but will now continue for another year to help “cut red tape blocking businesses from switching to zero-emission vans.”

The scheme will remain unchanged, meaning buyers of small electric vans (up to 2.5 tonnes) can still claim up to £2,500 off, while those opting for larger models (up to 4.25 tonnes) can secure a £5,000 discount. Since its launch in 2012, the grant has helped shift over 80,000 electric and zero-emission vans.

In a further boost for businesses, the Department for Transport (DfT) has scrapped additional training requirements that currently apply only to electric vans, but not their petrol and diesel counterparts. The move is aimed at making it cheaper and easier for firms to transition to electric fleets by reducing costs and simplifying driver recruitment.

Future of Roads Minister, Lilian Greenwood, said: “From van drivers and businesses to bikers and cabbies, today we are making it easier, faster and cheaper for people to switch to electric vehicles.”

The funding package also includes support for taxi drivers, who can now claim a £4,000 grant towards the purchase of a zero-emission black cab. Meanwhile, bikers will continue to benefit from a £500 grant towards electric motorbikes for another year.

Van buyers will still be able to benefit from a £2,500 discount thanks to an extension of the incentive