Vehicle upgrade grants scheme has now closed
The grants scheme set up to support people and businesses affected by the Clean Air Zone has now closed after providing more than £5.5 million in financial assistance.
Launched alongside the Newcastle and Gateshead Clean Air Zone, the programme helped drivers and businesses upgrade to cleaner, compliant vehicles. Over its three-year duration, the scheme supported more than 1,100 local businesses, tradespeople and taxi drivers to replace older, more polluting vehicles, contributing to improved air quality across the region.
The grant application process formally ended on 30 January 2026, three years after the introduction of the Clean Air Zone. While demand for funding was high at the start of the scheme, applications had significantly reduced in recent months.
About the grants
Funding for the grants has been provided by government and the following amounts have been agreed for each vehicle type:
Taxis, including Hackney carriage and private hire vehicles – up to £3,500
Wheelchair accessible taxis, including Hackney Carriage and private hire vehicles – up to £4,000
Light goods vehicles – up to £4,500
Heavy goods vehicles – up to £16,000
Buses and coaches – up to £16,000
The amount of funding you receive will be based on the sale and purchase prices of your old and new vehicles. Please speak to the financial provider handling your grant application before agreeing a vehicle sale or purchase.
The funding can be used to help towards the cost of replacing or upgrading a non-compliant vehicle.
We have appointed two financial providers to distribute the grant funding and offer access to finance arrangements, using the grant, to help meet the cost of replacing a vehicle.
Applicants are under no obligation to take out a finance arrangement with either provider and, if you prefer, you may choose to make your own arrangements to fund the remaining cost of your new vehicle.
Please be aware that, due to financial auditing requirements, grants cannot be provided if the vehicle sale or purchase has been made using cash.
Current Grant Applications
If you have previously applied for a grant and received an eligibility letter, but have not yet accessed your funding, you may still be able to complete the process.
Please contact the Financial Provider named in your eligibility letter for next steps. Their contact details are included in the letter you received.
The letter will also provide confirmation of a 90-day exemption from CAZ charges.
This means that you won’t have to pay CAZ charges while you are completing the funding process and making arrangements to secure a compliant vehicle.
If you have applied but haven’t received an approval letter your vehicle will not be exempt and you will be required to pay CAZ charges.
If your exemption has expired and you are still waiting for your replacement vehicle you can apply to extend this exemption providing you have proof that a vehicle has been ordered.
It’s important that the information you provide as part of your application is accurate and, if you are approved for grant funding, you will need to sign a Grant Agreement before funding can be released. This is a legally binding document and you’ll be sent a copy of it with the eligibility letter.
If your application is unsuccessful, we will contact you to let you know and provide further advice, including details on how you can appeal the decision.
Read more about the appeals process and what you need to do.
Contact us
If you have a query regarding a grant application please contact the grant team on 0191 211 6435 (Monday – Thursday 10am - 3pm, Friday 9am - 12 noon)
If you have a query regarding a CAZ charge or exemption please contact the helpdesk on 0191 278 2711 or caz.helpdesk@newcastle.gov.uk (Monday to Friday 8:30am - 3:30pm)
For more information about the vehicle upgrade grants see our FAQ page.