Government extends car scrappage

The government has announced a £100m increase to the vehicle scrappage scheme, with van and car owners receiving added incentives to upgrade their modes of transport.

To date, 227,750 orders have been placed through the scheme and the scrappage scheme extension will fund a further 100,000 vehicles, bringing the total budget to £400m and covering up to 400,000 vehicles in total.

The extension will continue as a government and manufacturer partnership, with matched funding providing the £2,000 discount for each scrappage order.

Alongside the increased funding, the government will work with manufacturers to extend the benefits to van owners with vehicles over eight years old, rather than the current 10 year requirement.

Car owners will also benefit, with the age qualification changed by six months to extend the benefits to cars registered on or before 29 February 2000. The scheme will come to an end either in February 2010 or when the funding runs out.