ULEZ scrappage scheme expanded allowing more fleets to apply

A £110 million scrappage scheme will be opened up to more fleets ahead of the launch of London’s expanded ultra-low emission zone (ULEZ) in August.

From the end of July, businesses registered in London with fewer than 50 employees will be able to apply.

Currently, charities, sole traders and businesses with 10 or fewer employees registered in London can apply to scrap a van (£5,000 grant) or a minibus (£7,000 grant), retrofit certain vans or minibuses (£5,000 grant) or scrap and replace a van or minibus with a fully electric vehicle (EV) (£7,500 or £9,500 grant respectively). 

As well as allowing bigger operators to apply, charities operating in London will also be able to scrap or retrofit up to three vans or minibuses instead of just one. 

Furthermore, there will be a new grace period for sole traders, microbusinesses, small businesses, and registered charities who have ordered brand-new compliant vehicles, or if they have booked an approved retrofit appointment for a non-compliant light van or minibus.

For those that have booked a retrofit appointment for a non-compliant light van or minibus before August 29, the grace period would be confirmed upon proof of appointment and would apply for a maximum of three months from launch (to November 30, 2023) while the fleet waited for the retrofit to happen.

Fleets who have ordered a brand new compliant vehicle but have been informed that delivery will be delayed past August 29, due to issues such as supply chain delays, will also be given a dispensation.

This would require proof of purchase before August 29, and would apply until their vehicle was due to arrive, up to a maximum of six months post-launch (end of February 2024).

The change in qualifying criteria for the scrappage scheme will also apply to all Londoners receiving child benefit.

There are currently 874,710 London families in receipt of child benefit, with 578,315 in outer London who will also be allowed to apply for cash.  

The latest data from Transport for London (TfL) shows that nine out of 10 cars, and around 8 out of 10 vans seen driving in the zone on an average day are already compliant.

Mayor of London, Sadiq Khan, said: “We already have the biggest-ever scrappage scheme in place to support Londoners on low incomes, London based micro-businesses and charities and disabled Londoners.

“But I’ve listened to families and small businesses in outer London who want more support and I’m pleased to be able to announce today a major expansion to the scheme run by TfL to ensure we can help them.”  

Overall, 6,892 applications have been approved through the scrappage scheme so far, with £25,372,800 committed to date.

They include 3,035 car and motorcycle applications, committing £5,702,800 of funding, along with 3,857 van and minibus applications, committing another £19,670,000.

The grants for vans and minibuses are higher than cars and motorcycles, reflecting the higher purchase cost.

The figures from TfL also show that 2,311 Londoners on low-income benefits have had applications approved, worth £4,313,600; 724 Londoners in receipt of disability benefits, totalling £1,389,200; 48 charities have had their applications approved, totalling £288,500 in grants; 1,800 micro businesses have had their applications approved, totalling £9,217,500; and 2,009 sole traders have had their applications approved, totalling £10,164,000.

RAC head of roads policy Nicholas Lyes said: “We’re pleased the Mayor has expanded the level of financial support available to Londoners to help them upgrade to newer vehicles that meet the ULEZ standard and therefore won’t have to pay the daily charges.

“We had previously written to the Mayor expressing our concerns about the limited support of his scrappage scheme for older vehicles given the huge area the expanded ULEZ will cover and the short lead-in time to it coming into force, so we welcome the fact he has acted to help lower income households and small businesses. 

“Unfortunately, those living just outside of Greater London who commute into the expanded zone with non-compliant cars will not benefit, so we once again urge the Government to work with the Mayor to ensure some support is offered to key workers who fall into this category.”