In an effort to improve air quality and help to meet UK CO2 reducing targets, there is currently an incentive scheme to encourage those on low income to scrap older heavily polluting vehicles.
There are many terms and conditions and you do need to be in receipt of certain benefits but it does seem a very good scheme, particularly if you own an old vehicle that is still roadworthy and being used but costs a fortune to run and maintain!
The money provided is unlikely going to be enough to get you a new electric car... however it could be set aside to pay for other means of transport or used as a deposit to finance a newer efficient vehicle.
The terms and conditions and your plans in the future need to be very carefully thought through and talked over with someone such as the CAB if necessary and you particularly need to be very careful that your car will definitely qualify for the grant before you have it scrapped!
There is also a scheme for small business owners to scrap older vans and minibuses.