Vehicle upgrade grants - eligibility criteria
In order to be given a vehicle upgrade grant you must meet the eligibility criteria.
Please note that this criteria has recently been reviewed and there are changes that will affect owners of vans, light goods vehicles and minibuses.
On this page you will find details of the updated criteria, which you must meet in order to qualify for funding.
This criteria covers three main areas:
The vehicle that is being replaced. This must be a non-compliant vehicle that would be charged to enter the Clean Air Zone.
The replacement vehicle that is being purchased. This must meet Clean Air Zone emissions requirements (Euro 6 diesel or Euro 4 petrol) and would therefore not be charged to enter the zone.
The individual or organisation applying for the grant. There are additional criteria that must be met in relation to where the individual or business is located and how frequently they travel and conduct business within the zone.
Applications can only be made online and as part of the application process you will be required to provide evidence to demonstrate that you meet the eligibility criteria. Please ensure you have these documents, in electronic format, to hand before beginning the application. Details on the documents required can be found in the terms and conditions and at the bottom of this page.
Full terms and conditions will also be issued with the Grant Agreement.
What conditions must be met?
The vehicle that is being replaced
The vehicle must meet the following conditions:
The vehicle does not meet Euro 6 diesel or Euro 4 petrol standard. You can check this by entering the vehicle registration number at www.gov.uk/clean-air-zones.
Based on DVLA records, the vehicle has been owned by the applicant prior to 18 July 2022.
If the vehicle is a Hackney carriage or private hire vehicle, it must be licensed in Newcastle, Gateshead or North Tyneside.
If the vehicle is a van, light goods vehicle or minibus registered to a residential or business address in South Tyneside, Sunderland, Northumberland or County Durham local authority areas, you will be required to demonstrate regular business activity in the zone, twice a week over the last three months.
Please note that under the revised criteria, evidence of regular business activity inside the zone is no longer required for vans, light goods vehicles and minibuses registered to a residential or business address in Newcastle, Gateshead or North Tyneside local authority areas.
If the vehicle is a bus, coach or HGV, sufficient evidence must be provided to show regular business activity in the zone, twice a week over the last three months.
The vehicle must not have previously benefited from any CAZ vehicle upgrade grant or similar financial support, under the present or a previous owner.
The vehicle is not permanently exempt from paying CAZ charges.
The vehicle being replaced must be sold and the proceeds from the sale must be used towards the cost of the new vehicle.
The replacement vehicle that is being purchased
The new vehicle must meet the following conditions:
Once you have received your approval letter from us and before purchasing your replacement vehicle, you should contact one of our financial providers, who will carry out secondary eligibility checks.
You must identify and order the vehicle you want to purchase, and provide the vehicle details to us, within 90 days of your grant being approved, based on the date of your approval letter. Your eligibility for funding will expire after 90 days unless you can demonstrate progress towards ordering and purchasing a compliant vehicle.
All proceeds from selling the non-compliant vehicle must be used towards the purchase of the compliant vehicle.
The purchase of the compliant vehicle must be completed within four weeks of the sale of the non-compliant vehicle.
The vehicle must be the same type of vehicle as the one that is being replaced.
The replacement vehicle must remain registered to the applicant for at least two years from the replacement date. Checks will be made via the DVLA database to ensure compliance and repayment of the grant will be sought if this condition is not met.
Where a replacement vehicle is removed from the DVLA database, for example due to accident damage, the owner should notify the council as soon as possible
The individual or organisation applying for the grant
The person or organisation must meet the following conditions:
The vehicle owner must be listed on DVLA records as the registered keeper of the vehicle being replaced.
A company applying for funding must have been incorporated prior to 18 July 2022 and must have filed accounts with no adverse records.
The applicant must have a current operator’s licence.
If the applicant is a charity then it must have been registered prior to 18 July 2022 and must have filed accounts.
Funding for taxi upgrades will be prioritised for those licensed in Newcastle, Gateshead and North Tyneside.
What information and documents are required?
So that we can confirm you meet the criteria for funding we need to check the following:
Your current vehicle log book (V5C).
Your current vehicle MOT details. The vehicle must have a valid MOT remaining for a minimum of 90 days
Your licence documents if you are a Hackney Carriage or private hire driver. Priority for grants is given to drivers licensed in Newcastle, Gateshead and North Tyneside.
Your operator’s licence if you are applying for bus, coach or HGV funding.
Your Community Transport Permit (or Section 19 or 22 permit) if you are applying for funding for a minibus.
Your vehicle lease document if you are leasing your vehicle.
Where required, you must provide evidence of your regular business activity in the Clean Air Zone. This could include, but is not limited to: contract or order documents; telematics data; delivery notes and receipts; or rental / mortgage details showing that the vehicle is based within the zone.
Applicants applying for funding for a van or light goods vehicle registered to a residential address in Newcastle, Gateshead or North Tyneside local authority areas must provide a copy of their driving licence and vehicle insurance (policy schedule and certificate of insurance).
Those applying for funding for a van or light goods vehicle registered to a business address in Newcastle, Gateshead or North Tyneside local authority areas must provide a copy of their vehicle insurance (policy schedule and certificate of insurance), a full copy of a signed and dated lease or rental agreement for the business address and copies of utility bills for the business address.