'Cash for bangers' scheme

The UK car scrappage scheme, as proposed to the Government by the Society of Motor Manufacturers and Traders (SMMT), would mean owners of cars or vans that are at least nine years old could scrap them and receive £2,000 towards the cost of a new (or up to one-year-old) car.
A proviso is that the cars that they trade in must be taxed and tested, and have been owned by the driver for at least one year.

Will Thomas, head of motor insurance at Confused.com, says: "The car scrappage scheme is a fantastic idea, which has worked brilliantly in other European countries. However, whether the Government has the confidence and conviction to go through with such a radical scheme remains to be seen.

"New car registrations fell by more than 30% last month alone, so a confidence boost by way of this incentive would be a welcome move to kick-start the car market again. The environmental benefits could be enormous and research suggests that the majority of people who would take up the offer would be opting for smaller cars, too. This would mean less C02, less fuel consumption and lower running costs as a result - and it could mean cheaper car insurance to boot. Let's hope there's a positive announcement about this in tomorrow's Budget, because actions speak louder than words."