Government boosts green freight with up to £120,000 truck discounts

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In a significant step forward for decarbonising road freight, the UK government has this month expanded support for zero‑emission heavy goods vehicles. On 6 January 2026, it unveiled a boost to the Plug‑in Truck Grant, offering discounts of up to £120,000 on new electric trucks. This comes as part of a broader £318 million investment package for green freight.

The enhanced funding under the Plug‑in Truck Grant offers tiered support: smaller trucks (4.25t to 12t) can receive up to £20,000, mid‑sized trucks (12t to 18t) up to £60,000, and larger trucks (18t to 26t) as much as £80,000 off their purchase costs. The grant boost is timed to run through to March 2026, reinforcing industry efforts to shift towards zero‑emission freight.

This announcement coincides with encouraging trends in zero‑emission HGV uptake. In the first half of 2025, registrations for such vehicles surged nearly 60% year‑on‑year, reaching some 183 units, although overall market share remained under 1%. While the increase demonstrates growing momentum, the low share highlights the scale of the challenge ahead. Compounded by concerns over costly production and limited depot infrastructure, adoption continues to lag behind ambitious targets.

Bright spots are emerging from several high‑profile industry deployments. Logistics firm Wincanton took delivery in June 2025 of 24 new electric trucks, expected to reduce CO₂ emissions by around 2,400 tonnes annually. The rollout included depot‑based charging infrastructure across regions including West London, Scotland and Northamptonshire.

Retailer M&S, under the eFREIGHT 2030 initiative, introduced five battery electric HGVs and 30 biomethane‑powered compressed natural gas vehicles into its operations. These vehicles directly replace diesel trucks on major London and South East routes, and together make up almost 10% of the company’s transport fleet. By mid‑2025, M&S and its partner Renault Trucks also marked six months of successful operation with their electric E‑Tech T HGVs, reporting high driver acceptance due to improved comfort, reduced noise and smoother handling.

National carrier Royal Mail has also made strides in electrifying its fleet. In December 2025 it deployed eight DAF 42‑tonne XD 350E electric HGVs across Midlands and North West parcel hubs. These vehicles, supported by high‑performance chargers, are expected to cut about 1,000 tonnes of carbon emissions per year.

Meanwhile, the ZENFreight consortium part of the government’s Zero Emission HGV and Infrastructure Demonstrator (ZEHID) programme is enabling real‑world trials of both battery electric and hydrogen fuel cell trucks. Member John G Russell (Transport) Ltd will integrate three of each type into its fleet, supported by shared depot charging and hydrogen infrastructure, with vehicles expected on the road by March 2026 Together, these deployments illustrate how technology, collaboration and funding are opening the door to low‑carbon freight, despite persistent barriers. Operator hesitance is partly driven by high acquisition costs, uncertain return on investment and a scarcity of charging infrastructure particularly en‑route chargers, with fewer than five HGV‑dedicated chargepoints nationwide.

What this means:
This new funding boost will improve the financial appeal of electric HGVs, reducing the upfront cost gap with diesel alternatives and giving operators confidence to invest earlier. Complementing this with continued support for depot and public charging infrastructure including rapid grid connections will be critical to sustaining momentum.

Growing HGV deployment under real‑world trials like eFREIGHT 2030 and ZENFreight is generating valuable performance data and operational insights. This can de‑risk investment decisions and build the business case for broader electrification, as seen in examples from Wincanton, M&S and Royal Mail.

Despite progress, the UK has a long road ahead. With zero‑emission truck registrations still under 1% of the market, scaling deployment rapidly over the next decade will require investment, infrastructure and policy levers acting in harmony. The government’s financial support is timely, but must be paired with planning reforms and faster infrastructure delivery to unlock change at scale.

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