Insurance Insights & Advice

UK Couriers and Electric Vans: Navigating New Incentives Without the Hype

Admin, Ratcliffes
8 August, 2025

Introduction

The conversation around electric vans has grown louder in 2025, not least because the UK Government recently extended the Plug-in Van Grant and announced £120 million in funding to accelerate the rollout of electric vans, taxis, and motorbikes¹. For couriers and light haulage operators, the question is no longer “Are electric vans coming?” but “When, if ever, will they make sense for my business?”

This is not about telling every driver to switch today. For many, the realities of long-distance work, high vehicle costs, and charging limitations mean diesel or petrol vehicles remain the most practical choice. But understanding the changes now can help you make informed decisions in the years ahead, and if those choices become convenient, cost‑effective, and operationally straightforward, they could also bring environmental benefits.

1. What’s Changed in 2025

Funding boost: £120m to extend the Plug-in Van Grant, reducing upfront costs for eligible new EV vans¹ ².
Licence rules update: Category B licence holders are no longer required to complete five hours of additional training to operate 4.25 tonne electric vans, aligning EV capabilities with ICE (Internal Combustion Engine) equivalents³ ⁴.
Industry adoption and infrastructure: Amazon placed the UK's largest order of electric HGVs in January 2025⁵. Public charge points also passed 76,500 as of 1 April 2025, with 15,446 rapid or ultra-rapid devices⁶.

2. Where Electric Vans Make Sense Now

Electric vans can already be a practical fit for:

Short-range, urban delivery routes with reliable charging access.
Businesses operating from depots with overnight charging facilities.
Contracts in low-emission zones (LEZs) or ultra-low emission zones (ULEZs), where electric vehicles can avoid daily charges that diesel and petrol vans must pay⁷.
Work in cities with active Clean Air Zones, such as Birmingham⁸ and Bristol⁹, with more towns listed on the government checker¹⁰.

Insurance angle:

Some insurers recognise the reduced environmental impact and potential lower mileage in city-based EV work, which can influence premiums.
If you frequently enter ULEZ or CAZ areas, EVs can cut daily operational costs, freeing budget for enhanced insurance features such as higher goods-in-transit limits or breakdown cover.

3. Barriers That Remain

Upfront cost: Even with grants, EV vans are generally more expensive than their diesel counterparts. Trade bodies note EV van uptake remains below mandated targets despite growth, reflecting cost and infrastructure challenges¹¹.
Charging gaps: Progress continues, but availability is uneven. As of 1 April 2025, the UK had 76,507 public charging devices, of which 20 percent were 50kW or faster⁶. Parliament’s Public Accounts Committee also highlighted patchy provision and regional divides in March 2025¹².
Range: Long-haul couriers may find current battery ranges limiting, especially when carrying heavier loads.
Repair networks: EV repairs can be costlier and may require specialist garages, affecting downtime.

4. Insurance Considerations

Most insurers now offer policies for electric vans, including:

Goods in Transit coverage.
Battery cover for damage or theft.
Breakdown assistance with EV recovery included.

Premiums can vary depending on vehicle value, repair costs, and specialist parts. Theft prevention remains essential, as high-value EVs can attract unwanted attention.

5. Practical Steps Without Committing

Even if an electric van is not right for you today, you can:

Monitor grant deadlines and eligibility changes.
Trial EVs for specific routes or short-term contracts.
Consider leasing before buying to test real-world suitability.
Stay up to date with developments in charging networks and battery technology.

Closing Thought

Electric vans are not the default choice for every courier in 2025, and that is okay. The smart move is to keep an eye on the evolving incentives, technology, and infrastructure so that if and when the time is right, you can make the transition smoothly and on your own terms.

Footnotes

Tags:electric-vehicles

Back to Insights page...