News

Changes to recovery charges welcomed

01 May 2008

From 1 October new scenario-based statutory charges for the removal, storage and disposal of vehicles ordered by the police will come into effect. The charges have remained unchanged since 1993, with removal set at £105 storage at £12 a day and disposal costing £50. Following a consultation paper last year seeking views on updating the charges, the Home Office has now finalised a new pricing structure.

The new charges are broken down by vehicle type and scenario. The maximum charge is set  at £6,000 and is for a laden vehicle over 18 tonnes that is off road, not upright, and/or substantially damaged, while the minimum charge is for a vehicle under 3.5 tonnes that is on the road, upright and not substantially damaged.

The RHA, FTA and the Association of British Insurers have welcomed the new charging system, although the RHA and FTA are seeking clarification on some of the terminology. Malcolm Bingham, FTA's head of road network management policy, says: "Our concerns centre around how the terms 'unladen' and 'laden' are defined and also what is regarded as 'substantial damage'."

The Home Office says it is working with its lawyers to provide "clear and precise definitions of all terms used". Jack Semple, the RHA's director of policy, adds: "Overall, we support the new charging regime as it brings transparency, fairness and predictability, which was lacking with the current system."


Laura Hailstone
Email at laura.hailstone@rbi.co.uk
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