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

Future of roads minister, Lilian Greenwood, has confirmed the department is extending the Plug-in van grant for another year, to help van drivers and businesses transition to zero emission vehicles.

The extension will mean businesses and van drivers can receive grants up to £2,500 when buying small vans up to 2.5 tonnes and up to £5,000 for larger vans up to 4.25 tonnes.

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

The department says it is also making it easier to switch to zero emission vans – which can be heavier than their petrol and diesel counterparts despite being of the same size – by removing the requirement for additional training that is currently in place only for zero emission vans but not their petrol and diesel equivalents.

This will help businesses by taking away training costs, cutting red tape and making it easier to hire drivers when operating electric vans.

Today’s funding is part of more than £2.3bn to help industry and consumers make a supported switch to electric vehicles (EVs).

Lilian Greenwood said: “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.

Bikers will continue to have access to a £500 grant from government to buy an electric motorbike for another year.

More than 382,000 electric cars were sold in 2024 – up a fifth on the previous year – and there are now more than 74,000 public chargers in the UK