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Greater Manchester private hire drivers handed £2,500 vehicle upgrade lifeline as new £2m grant fund opens
Greater Manchester has launched details of a new £2 million Private Hire Vehicle Support Fund, offering eligible locally licensed PHV owners grants of up to £2,500 towards replacing vehicles that fail to meet required emissions standards.
The Greater Manchester Combined Authority (GMCA) scheme is aimed specifically at vehicles licensed by one of the city region’s ten licensing authorities. Eligible vehicle licence holders will be invited by email to apply through a dedicated funding portal.
To qualify, the vehicle being replaced must fall below the fund’s emissions requirements. A compliant vehicle is defined as petrol meeting at least Euro 4, diesel meeting Euro 6, or a Zero Emission Capable (ZEC) vehicle. The ZEC definition requires CO2 emissions below 50g/km and a zero-emission range of at least 70 miles under the specified WLTP measurement.
Eligibility is also tied to historic licensing dates. Applicants must have been the licence holder of the non-compliant PHV on both 1 October 2024 and 1 March 2026. On 1 March this year, the vehicle must also have been taxed, insured and licensed as a private hire vehicle by a Greater Manchester licensing authority.
The £2,500 can be put towards a range of replacement technologies rather than solely electric vehicles. Petrol, diesel and hybrid replacements can qualify provided they satisfy the minimum emissions criteria and the licensing requirements imposed by the relevant local authority. Vehicle retrofits are not covered by the scheme.
A potentially important element for drivers who have already acted is retrospective eligibility. GMCA says licence holders who replaced an eligible non-compliant vehicle with a compliant vehicle on or after 1 March 2026 may still qualify. Applications for retrospective funding are expected to open in early October 2026.
For drivers who have yet to replace their vehicle, an approved application will result in a Fund Award Notification, known as a FAN. The applicant will then have four months to obtain an eligible replacement and have it licensed with a Greater Manchester licensing authority. The grant is paid after the replacement vehicle has been licensed rather than before the purchase takes place.
There are continuing conditions attached to the funding. The replacement must remain licensed as a PHV with a Greater Manchester licensing authority for at least two years from the date the grant is received. Where the vehicle being replaced is wheelchair accessible, its replacement must also be wheelchair accessible.
Applicants will also face documentary checks. GMCA requires photo identification, proof of address, a recent personal bank statement, the V5C logbook and current PHV licence. Those seeking retrospective funding after already purchasing a replacement will additionally need evidence of the transaction, including an invoice or receipt containing specified vehicle and seller details. Payments will be made directly into the applicant’s personal bank account.
The final structure represents a substantial change from the package originally proposed for Greater Manchester’s private hire sector. Earlier this year, leaders backed plans for £4.45 million of support which would have offered either a £5,000 interest-free loan or a £1,000 grant to locally licensed PHV operators upgrading vehicles.
GMCA subsequently reconsidered the loan element. A report considered in June recommended removing loans altogether and replacing the previous arrangement with a grant-only model worth £2,500 for each eligible vehicle. The authority estimated the revised scheme would cost a maximum of £1.98 million.
The fund arrives as Greater Manchester licensing authorities continue the transition towards minimum emissions requirements for taxis and private hire vehicles. GMCA says most of the city region’s licensing authorities require vehicles to meet minimum emissions standards by 31 December 2026, although exemptions can extend the period for some vehicles.
The restriction to Greater Manchester-licensed vehicles is also significant in a market where PHVs can legally work across local authority boundaries under the existing licensing framework. The new funding therefore provides a direct financial benefit to eligible vehicle owners who maintained their licence locally on the scheme’s qualifying dates.
GMCA has also introduced an online registration-number checker allowing vehicle owners to establish whether their vehicle is recorded as potentially eligible. Drivers who believe they satisfy the criteria but have not been contacted have been advised to approach their vehicle licensing authority.
