£120 million to roll-out more electric vehicles including taxis

Drivers including cabbies are set to benefit from £120 million in government funding to make the switch to cleaner vans, wheelchair accessible vehicles and taxis easier, faster and cheaper.

Today (25 February 2025) Future of Roads Minister Lilian Greenwood confirmed that the department is extending the Plug-in van grant for another year, to help van drivers and businesses transition to zero emission vehicles.

The Plug-in van grant has helped sell over 80,000 electric and zero emission vans since its launch, as the government continues to back businesses all over the country.

Today’s funding is part of over £2.3 billion to help industry and consumers make a supported switch to electric vehicles (EVs). This is creating high paid jobs, supporting businesses up and down the country and tapping into a multi-billion pound industry to make the UK a clean energy superpower and deliver the government’s Plan for Change.

Future of Roads Minister, Lilian Greenwood, said:

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.

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 department is also supporting taxi drivers make the switch to electric for another year, by making £4,000 available to buy an iconic zero emission black cab amongst other models, making journeys cleaner and more comfortable for passengers.

The Plug-in wheelchair accessible vehicle grant cap is also being increased from £35,000 to £50,000, giving consumers a wider choice of vehicle models and removing barriers for disabled passengers, so that they can get around more easily and with greater peace of mind.

Last year saw record numbers of people making a supported switch to electric vehicles, with the UK leading Europe in sales, and growth of more than a fifth on the previous year. The government has been engaging closely with car manufacturers on how to support them to deliver the transition to electric vehicles with a consultation recently closing, which sought views from industry on how to deliver the manifesto commitment to restore the 2030 phase out date for new purely petrol and diesel cars.

The average range of a new electric car is now 236 miles – that’s about 2 weeks of driving for most people – all the while emitting just one-third of the greenhouse emissions of a petrol car during its lifetime.