Fleets invited to apply for share of £400,000 eCargo bike fund

A new £400,000 funding round for the eCargo Bike Grant Fund, to help and support small businesses invest in electric cargo bikes, has been announced by the Energy Saving Trust and the Department for Transport (DfT).

The eCargo Bike Grant Fund aims to give businesses the opportunity to introduce eCargo bikes into their fleet operations by covering up to 40% of the total cost, with a maximum of £2,500 for two-wheel models and £4,500 for three-wheel models.

Tim Anderson, group head of transport at the Energy Saving Trust, says that eCargo bikes can be an “attractive low carbon transport option” and are growing in popularity.

“The eCargo Bike Grant Fund will provide businesses with an excellent opportunity to make lasting changes to how they transport goods,” he said.

“They offer significant benefits, most impressively fuel cost savings and contributing to improved local air quality, both of which are particularly appealing as we work towards a green recovery following the Covid-19 pandemic.”

The cash is available to all businesses operating in England. Applications are open until December 14, 2021, with the option of joint ‘high-street’ applications, giving SMEs the option to pool their resources into one application.

Anderson continued: “With more deliveries being made to our homes than ever before, last mile delivery is an important area for consideration in our journey to reduce transport emissions to net zero by 2050.

“We expect the eCargo Bike Grant Fund to support longer-term and wider uptake of these light vehicles as they become more widely adopted.”

All eCargo Bike Grant Fund support is conditional on recipients signing up to a robust code of practice, which includes cycle safety best practice, developed in association with the UK Cycle Logistics Federation and the Bicycle Association.

Chris Heaton-Harris, cycling minister, said: “eCargo bikes are a great way for businesses to transport goods and make deliveries on time while cutting congestion on our roads and benefitting the environment.

“As we build back greener from the pandemic, this new funding will help businesses enable a cleaner, healthier and more sustainable way to operate in local communities across the country.”

Grant funding must be claimed by February 14, 2022. The eCargo bikes do not need to have been delivered for funding to be claimed.

Fleets can find out more about the scheme and apply at

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