Khan launches £110m scrappage scheme ahead of ULEZ expansion

A £110m scrappage scheme has been launched by London Mayor Sadiq Khan ahead of the expansion of the capital’s Ultra Low Emission Zone (ULEZ) across all London boroughs from 29 August 2023.

The scheme will provide grant payments to successful applicants to scrap or retrofit vehicles that do not meet the emissions standards and switch to cleaner, greener modes of transport. It is aimed at Londoners on certain low income or disability benefits, and small businesses (up to 10 employees), sole traders and charities with a registered address in London. Only eligible applicants with vehicles that do not meet the ULEZ emissions standard will qualify for our new scrappage scheme.

A previous scrappage scheme saw the removal of more than 15,000 polluting, said Transport for London (TfL).

Eligible applicants can get up to £2,000 for scrapping a car or up to £1,000 for scrapping a motorcycle.

For wheelchair accessible vehicles there is a payment of £5,000 to scrap or retrofit to the ULEZ standard.

To qualify for the wheelchair accessible grant payment of £5,000, the vehicle must have been converted by mobility experts to allow a disabled person to access the vehicle as the driver or passenger.

The ULEZ van and minibuses scrappage scheme is open to micro businesses (with up to

10 employees), sole traders and registered charities. Your organisation must operate within the 32 boroughs of London or the City of London. Grant payments of between £5,000 - £9,500 are available.

TfL is removing the annual £10 per vehicle Auto Pay registration fee to make it easier for people with non-compliant vehicles to pay the charge.

On 30 January TfL increased the PCN level for the ULEZ from £160 to £180 (reduced to £90 if paid within 14 days) to “maintain the deterrent effect of the scheme and achieve the scheme’s air quality and health objectives”.

Alex Williams, TfL’s chief customer and strategy officer, said: “Pollution is a silent and indiscriminate killer that is disproportionately blighting the outer London boroughs, which is why we are expanding the ULEZ across the whole of the capital.

“Londoners are already choosing public transport, walking and cycling for the majority of trips and the Mayor’s new scrappage scheme, the largest of its kind, will support more people to get rid of their highly polluting vehicles and make the switch to greener travel.

“£110m has been made available to support those Londoners that need it most to get rid of the dirtiest vehicles. These grants will play a significant role in ensuring smaller businesses, those on low incomes, disabled people and charities are fully prepared ahead of the expanded zone coming in later this year.”

A new grace period will be introduced for disabled Londoners, which will operate until 24 October 2027. This is in addition to the current disabled vehicle tax class, disabled passenger vehicle tax class and Wheelchair Accessible Private Hire Vehicles (PHV) exemptions introduced on 30 January 2023.

TfL is removing the annual £10 per vehicle Auto Pay registration fee to make it easier for people with non-compliant vehicles to pay the charge.

On 30 January TfL increased the PCN level for the ULEZ from £160 to £180 (reduced to £90 if paid within 14 days) to “maintain the deterrent effect of the scheme and achieve the scheme’s air quality and health objectives”.