The Best Discount You’ll Ever Get on a New Van

As a tradesman, you know a genuine deal when you see one. Whether you’re a builder, plumber, electrician, decorator, or courier, your van is your livelihood. Upgrading to a new one isn’t cheap, but it doesn’t have to break the bank.

That’s where the UK Plug-In Van Grant comes in. This isn’t just a gimmick or a temporary sale price. It’s a government-backed discount of up to £5,000, applied instantly when you buy an eligible electric van.

This grant is designed to make going electric affordable now, not “one day in the future.” When you combine it with lower running costs and other incentives, the financial case for switching becomes hard to ignore.

What Is the Plug-In Van Grant?

The Plug-In Van Grant (PIVG) is a scheme run by the Office for Zero Emission Vehicles (OZEV). Its goal is to encourage the adoption of electric vans in the UK.

Key Details

• Covers 35% of the van’s purchase price, up to a maximum of £5,000 for large vans (over 2.5 tonnes) and £2,500 for smaller vans.

• Available on brand-new electric vans that meet OZEV eligibility criteria for weight, range, and emissions.

• Applied at the point of sale by the dealer — no paperwork or waiting for a rebate.

  
  

For tradesmen, this means you simply pay less for the van — immediately.

How Much Can Tradesmen Save?

Let’s break it down with a real-world example:

• List price of electric van: £45,000

• Plug-In Van Grant (35% capped at £5,000): -£5,000

• Price you pay: £40,000

  
  

That’s an instant saving of £5,000, before you’ve even considered fuel, maintenance, or tax savings.

If you run a small fleet of three vans, you could be looking at £15,000 in grant funding. That’s enough to pay for branding, specialist racking, or even an extra apprentice.

Who Can Apply for the Plug-In Van Grant?

Good news! Any UK-registered business can apply — from sole traders to limited companies.

This includes:

• Self-employed tradesmen

• Small firms with a single van

• Growing businesses with multiple vehicles

  
  

Requirements

• You must be buying an eligible electric van from an approved dealer.

• The van must be new — the grant does not apply to used or second-hand EVs.

• You cannot claim the grant for a vehicle you already own.

  
  

How the Process Works

This is one of the easiest government schemes to use. Here’s how it works:

1. Choose your van – Make sure it’s on the official OZEV-approved list (most major electric van models are).

2. Buy from an approved dealer – They’ll confirm the van is eligible.

3. Dealer applies the grant – The discount is taken off the price automatically.

4. You drive away with your savings – No forms, no follow-up, no waiting.

   
   

Why the Grant Makes Going Electric More Affordable Than Ever

The Plug-In Van Grant doesn’t exist in isolation. It stacks on top of other cost savings:

Lower Running Costs

• Charging is significantly cheaper than diesel refuelling — often £15–£20 for a full charge compared to £100+ for a tank of diesel.

• Maintenance is reduced due to fewer moving parts — no oil changes, no exhaust system, and less brake wear.

  
  

Tax Savings

• Electric vans pay £0 road tax.

• Lower Benefit-in-Kind rates if you provide a van for mixed personal/business use.

  
  

Zone Charge Exemptions

• No ULEZ or Clean Air Zone charges — saving up to £12.50 per day in certain cities.

  
  

When you combine the £5,000 upfront saving with these ongoing savings, many tradesmen find their electric van is cheaper to own over five years than a comparable diesel model.

Common Misconceptions About the Plug-In Van Grant

“It’s too complicated to claim.” False — the dealer handles everything. You simply pay a lower price.

“It’s only for big fleets.” False — sole traders can claim it just as easily as national companies.

“The grant will always be there.” Unlikely — the government often reduces or removes grants as EV adoption grows. Acting now locks in the highest available discount.

Can You Combine It with Other Incentives?

Yes — and you should!

A tradesman buying a new electric van in 2025 could combine:

• Plug-In Van Grant: £5,000

• Workplace Charging Scheme: £350 per socket

• Road Tax savings: ~£350/year

• ULEZ exemptions: £1,000–£1,500/year depending on jobs in charge zones

  
  

Over five years, combined savings can easily exceed £15,000–£20,000.

A Real Tradesman Example

Before: Dave, a self-employed carpenter, drives a diesel van into Bristol twice a week. He pays £9/day in Clean Air Zone fees, spends £120/week on diesel, and budgets £600/year for servicing.

After switching to electric with the Plug-In Van Grant:

• £5,000 knocked off the purchase price

• CAZ fees = £0

• Weekly charging cost: ~£35

• Servicing costs halved

  
  

Dave estimates he’s saving around £4,500/year. This means his new van will have paid for itself compared to diesel costs in just over five years.

How to Check If Your Van Qualifies

The government maintains an official list of eligible models on the OZEV website. If you’re working with a reputable dealer, they’ll confirm eligibility immediately.

Look for:

• Minimum range – At least 60 miles on a single charge

• Emissions – Fully zero-emission at the tailpipe

• Weight limits – In line with grant category rules

  
  

Why You Should Act Now

Grants like this are rare. The car version of the Plug-In Grant has already been phased out, and there’s no guarantee the van version will stay at its current value.

The longer you wait, the more likely it is the amount will be reduced. That’s £5,000 you could miss out on.

A No-Brainer for Tradesmen Going Electric

For tradesmen, the Plug-In Van Grant removes one of the biggest barriers to going electric — the upfront cost. Combine it with lower running costs, tax breaks, and exemption from zone charges. It’s clear why more builders, electricians, plumbers, and delivery drivers are making the switch in 2025.

The grant is simple to use, generous in value, and available today — but it won’t be around forever.

Your next step? Book a 24-hour test drive and see how an electric van fits into your working week. Let the government help pay for it!

Conclusion

In summary, the Plug-In Van Grant is a fantastic opportunity for tradesmen looking to upgrade to electric vans. With significant savings, lower running costs, and the ease of application, there’s never been a better time to make the switch. Don’t miss out on this chance to enhance your business while contributing to a more sustainable future.