Government says “no” to scrappage scheme for bicycles

A proposal to replace the car scrappage scheme with an environmentally-friendly version for cyclists has been rejected by the government.

The Environmental Transport Association (ETA) proposed a ‘pounds-for-pedals’ scheme to give cyclists £100 to spend on a new bicycle, but in contrast to the car scrappage grant the traded-in bike was not to be destroyed but shipped to the developing world to be re-furbished and re-used.

The government response to bicycle scrappage idea

“The (car scrappage) scheme is primarily designed to boost the automotive industry and restore consumer confidence; it was not designed as a green measure. However, the Government believes that there will be some benefits for the environment as old cars are replaced by newer, more fuel-efficient models. There are no current plans to extend the scheme to bicycles.”

No bicycle scrapapge grant yet, but save money on your cycling now

The best cycle insurance policies now include at no extra cost new-for-old replacement, cover for accidental damage, third party insurance, personal accident cover, breakdown for you and your bike and race event cover. Compare what you are paying with a “quote here”:/insurance/cycle

Car Scrappage: economic nonsense?

Director at the ETA, Andrew Davis said; “The government admits that the scrappage scheme was not designed as a green measure, because whilst new cars are cleaner than their older counterparts, scrapping an older vehicle and building an entirely new one in order to achieve this is not sustainable.”

The scheme has increased car sales this year but it is questionable whether it makes economic sense in the medium to long term.

A study by a German economics institute criticised scrappage schemes for the way in which they distort competition and create the need for further state intervention and compensatory measures in other branches of the economy.

The Halle Institute for Economic Research says of the German scrappage scheme: “Behind these payments stands nothing more than the subsidising of an individual branch of the economy – with all the negative distorting effect that such favourable treatment brings…”

Keeping your car longer is greener

Changing a car frequently has a financial as well as environmental cost; drivers who buy a car new and then trade it in after three years incur a cost of as much as 50% in depreciation.

A good car warranty from a reputable company minimises depreciation and can make your driving greener by extending the useful life of your car.