The UK government has confirmed a £120 million funding package to help drivers, businesses and taxi operators transition to cleaner vehicles.

Future of Roads Minister Lilian Greenwood announced today (25 February) that the Plug-in van grant will be extended for another year.

The scheme offers businesses and drivers grants of up to £2,500 for small vans up to 2.5 tonnes and up to £5,000 for larger vans up to 4.25 tonnes.

The government is also removing additional training requirements currently needed only for zero emission vans.

According to the government this will make it easier and less costly for businesses to adopt electric vehicles.

For taxi drivers, the scheme will provide £4,000 towards the purchase of zero emission black cabs and similar models for another year.

Additionally, the cap for the Plug-in wheelchair accessible vehicle grant has been increased from £35,000 to £50,000, giving disabled passengers more vehicle options.

Motorcyclists will continue to receive a £500 grant towards electric motorbikes for another year.

"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," said the Future of Roads Minister.

She added: "By making the transition to zero emissions a success, we're helping to drive growth all over the UK, putting more money in people's pockets and rebuilding Britain to deliver our Plan for Change."

The funding is part of a larger £2.3 billion package aimed at supporting the transition to electric vehicles.

Since its launch, the government said the Plug-in van grant has helped sell over 80,000 electric and zero emission vans.

Electric vehicle adoption continues to grow in the UK, with more than 382,000 electric cars sold in 2024 – up 20% from the previous year.

The UK's charging infrastructure has also expanded, with over 74,000 public chargers now available nationwide, including nearly 20,000 added last year.