A new £2 million fund to help businesses invest in electric cargo bikes for last mile deliveries is now live.

The eCargo Bike Grant Fund is available to limited companies, sole traders, partnerships, charities and non profit organisations operating across England.

Applicants can benefit from funding for up to 20% of the cost of a new electric cargo bike, up to the value of £1,000 per bike.

To be eligible, an ecargo bike must have a minimum of 125-litre cargo volume capacity and a minimum of 130kg weight capacity of combined rider and cargo weight.

The funding available is also conditional on applicants signing up to a code of practice that has been developed by the Department for Transport and the Energy Saving Trust, in association with the UK Cycle Logistics Federation and the Bicycle Association and includes cycle safety best practice.

Transport Minister Jesse Norman said: “This new fund for ecargo bikes will help cut congestion, improve air quality and encourage companies to play their part in creating a cleaner, greener future.

“Supporting more sustainable deliveries is just one of the positive steps this government is taking towards a zero emission world.”