Vehicle upgrade grants
The Clean Air Zone in Newcastle and Gateshead applies to older and more polluting taxis, vans, buses, coaches and heavy goods vehicles.
You can check whether your vehicle is affected using the government’s online vehicle checker.
If your vehicle is affected, you may be eligible for funding to help replace or upgrade it.
We have recently completed a review of the grants scheme and, under new terms and conditions, more people with vans, light goods vehicles and minibuses will be able to qualify for funding.
On this page you will find information about the grants process, including who may be eligible and how to apply.
Please read the guidance on this page, along with the terms and conditions and the eligibility criteria, before you apply.
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.
Please be aware that, due to financial auditing requirements, grants cannot be provided if the vehicle sale or purchase has been made using cash.
Please note that applications for funding for buses and coaches are currently on hold while we await government guidance on the effectiveness of retrofitting technology. Temporary exemptions have been made available for those that have already applied or can show that their vehicle has already been retrofitted.
Who can apply
You can apply for grant funding to replace or upgrade a non-compliant vehicle that would be charged to enter the CAZ.
You can confirm whether your vehicle is non-compliant using the government’s online vehicle checker.
Following a review of the grants scheme, changes have been made to the terms and conditions and the eligibility criteria in order to make funding available to more local businesses.
This means that people with a van, light goods vehicle or minibus that is registered to a residential or business address in Newcastle, Gateshead or North Tyneside local authority areas will now be eligible to apply for funding without the need to demonstrate regular business activity within the CAZ.
Applicants with this type of vehicle who have previously applied unsuccessfully but who may now be eligible for funding will be contacted and invited to reapply. Retrospective applications for funding from these applicants will be accepted subject to terms and conditions.
These applications will be processed prior to applications being opened for other new applicants.
Eligibility for other categories of vehicles, as well as for vans or LGVs registered to addresses elsewhere in Tyne and Wear, Northumberland or County Durham local authority areas, will remain the same.
New applications for retrospective funding for vehicles that have already been purchased will no longer be accepted.
Grants are not available for: vehicles that are already compliant with emissions standards; vehicles that do not have to pay to enter the CAZ, including private cars, low emission vehicles and motorbikes; vehicles that are used for leisure purposes, such as motorhomes and horseboxes; and vehicles that are permanently exempt from CAZ charges.
About the application process
To apply for a grant you will need to complete an application form.
We are currently processing applications from targeted applicants before accepting new applications from others.
Once applications are opened up to all new applicants you will be able to apply from this page.
When we receive your application, we will carry out an initial check to make sure you are eligible for funding.
Once we have confirmed that you are eligible for funding you will receive an approval letter from us.
This letter will provide information on what to do next, including details of the financial providers you can contact to discuss the use of funding.
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 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 9am - 4pm)
For more information about the vehicle upgrade grants see our FAQ page.