Labour council to axe Clean Air Zone grants next month impacting thousands of petrol and diesel drivers

The council has now warned drivers in the area that the Clean Air Zone grants programme will shut its doors on January 30, 2026.

The scheme, which launched alongside the CAZ three years ago, has distributed more than £5.5million to assist over 1,100 local enterprises, tradespeople and taxi operators in swapping their older, more polluting vehicles for cleaner alternatives.

Both Newcastle and Gateshead councils have now started urging anyone who has yet to submit an application or finalise their claim to do so without delay.

The funding was established to help those affected by the zone's introduction meet the cost of upgrading to vehicles that comply with emissions standards.

Councillor Juna Sathian, Cabinet Member for Climate and Transport at Newcastle City Council, said: "We can see from the latest pollution data that our air quality is improving since the introduction of the Clean Air Zone.

"We are seeing the positive impact of people switching to vehicles with cleaner engines and the grants scheme has given financial support to many people who have made this important change."

She added that financial support is still available, but this will be coming to an end in January, "so I would encourage anyone eligible who has not yet applied to do so as soon as possible".

The councillor's comments reflect monitoring data showing measurable improvements in air quality since the zone became operational.

The Government-funded programme offers varying levels of support depending on vehicle type. Taxi drivers, including those operating hackney carriages and private hire vehicles, can receive up to £3,500, while wheelchair accessible taxi operators may claim up to £4,000.

Meanwhile, drivers with Light Commercial Vehicles are eligible for grants reaching £4,500, whereas operators of Heavy Goods Vehicles, buses and coaches can access substantially larger sums of up to £16,000.

The actual amount awarded depends on the sale price of the old vehicle and the purchase cost of its replacement.

Following a recent review of the scheme, eligibility criteria have been expanded to allow more van, light goods vehicles and minibus owners to qualify, particularly those registered to addresses in Newcastle, Gateshead or North Tyneside.

The decision to wind down the programme follows a marked drop-off in applications over recent months, despite strong initial demand when the scheme first opened. With fewer people now seeking assistance, the councils have opted to redirect any unspent funds towards improving older bus fleets operating in the region.

This reallocation is anticipated to deliver additional benefits for local air quality by tackling emissions from some of the most polluting public transport vehicles still in service.

The Clean Air Zone itself was established by local authorities following a legal directive from the central Government requiring action to address unlawful pollution levels in certain parts of Newcastle and Gateshead. The scheme's closure will come exactly three years after the CAZ launched.

However, private cars and motorbikes fall outside the CAZ's scope entirely and therefore do not qualify for grant assistance.

Similarly, leisure vehicles such as motorhomes and horseboxes are excluded, as are vehicles already meeting emissions requirements or those holding permanent exemptions.

Successful applicants receive a 90-day exemption from CAZ charges while arranging their replacement vehicle, with extensions available for those awaiting delivery of an ordered vehicle.