Honest John Vans Van News Buying and Selling

Plug-in van grant extended to 2026

Craig Cheetham, contributor
Wed, 26 Feb 2025

The government has announced an extension to the Plug-in Van Grant (PiVG), which will now remain in place until 2026 as part of a £120m funding package.

The move is part of what ministers describe as an initiative to cut red tape that is blocking businesses form switching to zero-emission vehicles.

This includes a recommendation to resolve the confusing situation around electric vans between 3.5t and 4.25t, which currently requires drivers to take additional training. 

The grant will continue to offer up to £2500 when buying small vans, weighing up to 2.5 tonnes, which are applied for at the point of purchase.

Larger vans, up to 4.25 tonnes, will receive as much as £5000 off the price of the vehicle. Over 80,000 PiVG applications have been processed since the scheme was launched in 2012. 

The grant has so far helped sell over 80,000 electric and zero emission vans.

The Department for Transport has also announced plans to take away the legal requirement for additional training that is currently in place for zero emission vans. This currently requires a licence derogation to drive vans up to 4.25t, allowing for the extra weight of vehicle batteries.

It says this will make it easier for companies to hire drivers when operating electric vans, as well as allow small businesses to take on electric models without concerns.

"From van drivers and businesses, to drivers with accessibility needs, bikers and cabbies, today we are making it easier, faster and cheaper for people to switch to electric vehicles," says Future of Roads Minister, Lilian Greenwood.

Ask HJ

Why is the company car tax loophole for pick-ups being closed?

Why is the BIK company car tax loophole for double-cab pick-up trucks with a payload of over 1000kg going to be closed from April 2025? Double-cabs with a payload of over 1000kg are currently classified as light commercial vehicles, but in Febraury 2024 HMRC announced they would instead be classified and taxed as regular passenger cars, moving to the emissions-based tax system. These plans were later dropped just days later following backlash from pick-up users, but the Labour government has since reversed this, so from April 2025, double-cab pick-ups will be classified and taxed as cars with the emissions-based system, as was originally planned by the HMRC, meaning company car tax costs will inevitably skyrocket for pick-up users.
The government claims that the loophole is being close because too many people are using the loophole to run a double-cab pick-up as a car, and are taxed as such. Utility and extended cab pick-ups which, also have back seats but only two doors, are still treated as commercial vehicles. We expect there will be a lot more of those on the market soon.
Answered by Craig Cheetham
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