London's ULEZ Scrappage Scheme

A new scrappage scheme worth £110m has been introduced by the Mayor of London to help eligible Londoners in scrapping their most polluting vehicles.

The scrappage scheme aims to prepare for the expansion of the Ultra Low Emission Zone (ULEZ) to all London boroughs, which will come into action from August 29th, 2023.

Funds of up to £9,500 will be available to eligible drivers to scrap or retrofit a light van or minibus or to put towards the cost of a cleaner vehicle. The scheme is open for applications starting January 30th, 2023, and the ULEZ expansion will take place on August 29th, 2023.

If you're driving a non-compliant vehicle anywhere within the ULEZ, including the expanded area from 29 August 2023, you could face a daily charge of £12.50.

Get in touch to discuss what we can do to help you navigate ULEZ

Where is London's ULEZ expanding to?

Most locations with the M25 will fall into the new ULEZ area

Map of London ULEZ expansion — New boundary for ULEZ

Who can apply for the ULEZ van and minibus scrappage scheme?

You can only apply for a grant payment to scrap or retrofit a vehicle that does not meet the ULEZ emissions standard.

Micro businesses:
· With 10 or fewer employees
· Up to £632,000 turnover or up to £316,000 balance sheet total in the preceding and current financial year
· Companies House registration as an active company or VAT registered within the 32 London boroughs or City of London
Sole traders:
· A self-employed person who owns and operates a business within the 32 London boroughs or the City of London
Charities that are:
· That are registered with the Charities Commission as active within the 32 London boroughs or the City of London

ULEZ scrappage scheme grant payment options:

Scrap a van: £5,000
Scrap a minibus: £7,000
Retrofit a minibus: £5,000
Scrap a van and replace with an electric van: £7,500
Scrap a minibus and replace with an electric minibus: £9,500

To qualify for the ULEZ scrappage scheme starting on 30 January 2023, the vehicle you intend to scrap must meet the following criteria:

It must be a light van (up to and including 3.5 tonnes gross vehicle weight) or minibus (up to and including 5 tonnes GVW).
It must be registered to an eligible organization for more than 12 months before the start of the scheme.
It must be insured for business use.
It must be registered with the DVLA in the name of the business, sole trader, or charity.
It must be certified with valid road tax and MOT.
It must be non-compliant with ULEZ regulations, which includes pre-Euro 6 diesel vehicles and pre-Euro 4 petrol vehicles.
If the vehicle is registered to an employee, director, or trustee of the organization, proof of their association with the organization is needed.

To qualify for the scheme a replacement vehicle must meet the following criteria:

A fully electric light van (up to and including 3.5 tonnes GVW) or a fully electric minibus (up to and including 5 tonnes GVW)
Purchased or on a hire/lease contract that is at least two years long
The same body type (van or minibus) as the vehicle that you scrapped

The application process has two stages:

Stage 1: check and apply online - evidence that organisation and vehicle qualify

Stage 2: Scrap, scrap and replace, or retrofit your vehicle - If you are replacing a scrapped vehicle, you will need to provide evidence of a fully electric, ULEZ compliant replacement vehicle.

Get in touch to find out how we can help your business navigate ULEZ

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