Vehicle scrappage scheme

The car scrap allowance is a scheme initiated by the UK Government on 22 April 2009 whereby UK citizens who have owned a car for more than 12 months and which was older than 10 years could apply for a £2000 bonus towards the purchase of a new car.

The scheme is to cost £300m and commences in May 2009 and will continue until March 2010 or until funding runs out. There is enough in the budget to cover the scrapping of 300,000 cars. The scheme is the Government's response to extensive lobbying from UK car manufacturers. The scheme was implemented by serving Chancellor of the Exchequer, Alistair Darling.