Drivers will receive up to £3,000 to replace their vehicles with transport which is more environmentally friendly, according to a new report.
Authorities will hand motorists who own the most polluting cars and live in congested areas “credits” that can be used to purchase bikes, electric scooters, and other greener transport forms, The Times newspaper said.
The report adds the credits valued from 1,500 to £3,000 can also be used on taxis, public transport and car clubs.
Motorists will be required to temporarily give up their vehicles as part of a trial in the West Midlands, funded through the £22million 'future transport' programme which aims to reduce reliance on cars in cities.
West Midlands mayor Andy Street said: "We have a number of candidates lined up in Coventry following a public appeal for volunteers last year and are putting processes in place to allow them to scrap their old cars in exchange for transport credits later this spring."
But AA president Edmund King called the initiative “bizarre” because many car firms are introducing electric vehicles, including Ford, which has pledged to only sell electric vehicles in Europe by 2030.
He added: "The money would probably be better spent on providing electric charging points for those without off-street parking rather than giving mobility credits for services that people will use when they need to or feel safe to."
A similar 'mobility credit scheme' is also being considered in Hampshire but this one would require people to hand over their cars permanently, the Times added.
Cycling and walking charity Sustrans Xavier Brice welcomed the schemes.
He said: “'It is great to see local authorities considering new ways to reduce car dependency, including mobility credit.”
The government says the ‘future transport’ programme aims to stimulate innovation in the transport sector, create new transport markets and secure a 21st-century transport system.
It adds the scheme should secure the UK’s position as a world-leading innovator, decarbonising the transport system for all society’s benefit.
The government has said some changes like transport apps and electric vehicles are already here, but the rest are likely to ramp up dramatically between now and 2030.