The Department for Transport is to provide a £500,000 funding package to support the growth of car clubs in the UK, transport minister Baroness Kramer has announced.

Managed by environmental transport NGO Carplus, which promotes accessible and low-carbon alternatives to traditional car use in the UK, the fund will be used to expand or establish car clubs and develop better links with public transport and bike sharing schemes.

Carplus will also manage a Car Club Challenge fund, providing grants to help start or expand projects in smaller towns or rural areas.

Chas Ball, chief executive of Carplus, said: ‘Car clubs are well established in London and are showing strong growth in some other cities. They have demonstrated a strong track record in reducing CO2 emissions and improving air quality. This is an exciting opportunity to expand this success and establish and grow car clubs in towns, cities and rural areas across in England.’

The Department for Transport sees car clubs as a way to reduce car ownership, encourage the use of walking, cycling or public transport and promote greener vehicles, and already funds 48 car sharing schemes through the Local Sustainable Transport fund.

Carless households are becoming more common in the UK, and the government is said to be keen to support car club membership, which is already at the 150,000 mark.

Baroness Kramer commented: ‘Car clubs cut congestion, reduce carbon and save people money while still giving people the freedom and flexibility to use a car when they want to. Interest in car clubs is already gathering pace and we want to give that interest added momentum. This funding will highlight their many advantages to even more people and help take car clubs up a gear.’