Greater Manchester has launched a new £2 million fund to help locally licensed private hire drivers switch to cleaner vehicles, improving air quality and supporting higher standards for passengers across the city-region.
Open for applications from today, Tuesday 15 September, the Private Hire Vehicle (PHV) Support Fund offers grants of up to £2,500 to private hire vehicle drivers licensed by one of Greater Manchester's ten councils.
The scheme will help drivers with older vehicles upgrade to Euro 4 or higher for petrol vehicles, Euro 6 for diesel vehicles, or zero-emission capable vehicles.
The fund has been developed in response to feedback from Greater Manchester's taxi and private hire trade through the ‘Backing Our Taxis. Local. Licensed. Trusted’ campaign.
It forms part of a wider plan to support locally licensed drivers to make the city region’s taxis and private hire vehicles among the safest, cleanest and most trusted in the country. It includes continued calls on the government to change the law on ‘out of area’ licensing.
Mayor of Greater Manchester, Bev Craig, said: “Private hire drivers play a vital role helping to keep Greater Manchester moving every day, whether that’s getting people to work, healthcare appointments, school, or helping them get home safely at the end of the day.
“We’ve listened to the trade and we’re launching this fund to offer private hire taxi drivers practical financial support to help them move to cleaner, more modern vehicles, which is good for them, passengers and good for our environment.
“I’ll continue the work with government to secure stronger legislation that better supports our locally licensed drivers. They should not be undercut by drivers licensed elsewhere, where we can’t guarantee a safe, high-quality service.”
Kevin Flanagan, GMB Manchester Central Branch Secretary, said: "The GMB welcomes the new support fund launched for private hire drivers across Greater Manchester. We are pleased to have worked with TfGM and welcome the commitment shown by the Greater Manchester Mayor's office in responding to the issues raised and making this support available to drivers.
"Drivers have faced significant challenges and costs in upgrading their vehicles in recent years, these grants will provide welcome assistance to those still making the transition to newer vehicles. We want Greater Manchester to be a national model for the trade and will continue to support policies and practices that improve standards, enhance passenger confidence and support the livelihoods of private hire drivers across the region."
Andy Wells, Regional Officer for Unite the union, said: “Further investment into the private hire sector can only be welcomed with the Hackney Support Fund scheme already being a success, with many drivers in Greater Manchester taking advantage of the opportunity to upgrade vehicles.
“This can only lead to an improvement in services for the customer, and the ongoing quest to improve the environment will also benefit.”
The Private Hire Vehicle Support Fund complements Greater Manchester’s existing Hackney Support Fund. Launched in December 2025, it helps licensed black cab drivers upgrade to cleaner vehicles, with funding already committed to more than 400 locally licensed black cab drivers.
John Potts, a Stockport-licensed hackney cab driver, recently switched to a 100% electric Wheelchair Accessible Vehicle. He said: “Making the move to an electric vehicle has opened up a whole new career for me. It’s a pleasure to drive, passengers love it and it feels good to know it’s good for the environment too.
“The biggest challenge for many drivers is the upfront cost of changing vehicles. Financial support like this made such a big difference to me and the whole process was really straightforward. I’d definitely encourage others to look into it and take advantage of the fund.”
Drivers licensed with a Greater Manchester local authority can find out more and apply to the funds online at: www.greatermanchester-ca.gov.uk/phv-support-fund
Source: Transport for Greater Manchester
