Cash-for-scrap scheme 'coming next month'

March 18, 2009 | By | In News

Govt about to offer drivers of old cars a £2000 allowance if they swap them for new ones.

It is now looking more and more likely that the Government will introduce a cash-for-scrap scheme for old cars. Sources within the Treasury have told The Times newspaper that the scheme will be announced in next month’s Budget statement, due on April 22.

The Automobile Association and other motoring pressure groups have called for a scheme under which drivers for old cars receive money for scrapping their old cars, providing they buy a new or nearly new vehicle. Similar plans have run successfully in Germany and other European countries, where they have given new-car sales a much needed boost at a time when they were flagging badly.

Under the Government’s scheme, it is understood drivers would be given a voucher worth £2000 once they have taken their old car for scrap. They can then ‘spend’ this on a new car or a used vehicle up to a year old. It is likely that their current cars will have to be at least nine years old to qualify.

The move has also gained support from some ‘green’campaigning groups because it should take older, high-polluting cars off the road and replace them with newer, cleaner alternatives.

The Government’s first reaction to the scheme was cool. However, it is now responding to the weight of opinion backing, and news from Germany showing how well it has worked there.

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