The Autumn Budget document said the Treasury would provide £120m in 2025/26 to support the purchase of new electric vans via the PiVG and to support the manufacture of wheelchair-accessible EVs.
Launched in 2012, the PiVG currently offers up to £2,500 for small vans and £5k for large vans, available on eligible vehicles and with the discount included by the seller in the purchase price.
The programme was due to end on 31 March 2025 and the fleet sector had been campaigning for an extension, spearheaded by the Zero Emission Van Plan coalition.
A spokesperson for the Zero Emission Van Plan, said: “The extension of the Plug-in Van Grant provides welcome relief to a sector facing an uphill battle to meet ambitious decarbonisation targets. Many van operators are seeking to kickstart their transition to zero-emission vehicles, with cost just one of the key barriers blocking their path.”