ULEZ scrappage scheme: How much can I get for my car, van or other vehicle? Who is eligible?

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Sadiq Khan’s scrappage scheme was introduced to help those needing to trade-in their vehicles because of the ULEZ expansion on August 29, 2023.

Offering money in exchange for trading in older, more polluting vehicles, Sadiq Khan’s scrappage scheme was launched in January 2023 to support those having to shift to cleaner modes of transport ahead of the Ultra Low Emission Zone (ULEZ) expansion on August 29.

Announcing the scheme, Mr Khan said: “I took the difficult decision to expand the ULEZ because it will save lives, help tackle the climate crisis and reduce congestion.

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“We have made huge progress in central and inner London but there is much more to do in outer London.

“We need to get the most highly polluting vehicles off our roads, which are damaging the health of all Londoners, including drivers.”

Once implemented, the ULEZ standard for vehicles will be Euro 3 for motorcycles, mopeds, motorised tricycles and quadricycles, Euro 4 (NOx) for petrol cars, vans and minibuses, and Euro 6 (NOx and PM) for diesel cars, vans and minibuses. Those that are not compliant will be liable for the £12.50 daily charge.

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Depending on the type of vehicle you wish to trade in, there are different support packages available via the scrappage scheme.

Below, we break down how much money you could be in for, and who can apply.

Sadiq Khan is intending on expanding the ULEZ on August 29. Credit: Jack Taylor/Getty Images.Sadiq Khan is intending on expanding the ULEZ on August 29. Credit: Jack Taylor/Getty Images.
Sadiq Khan is intending on expanding the ULEZ on August 29. Credit: Jack Taylor/Getty Images. | Getty Images

How much can I get for my vehicle with the scrappage scheme?

The amount eligible applicants can receive depends on the vehicle being scrapped.

Having gone through a couple of extensions, the scheme currently offers the following grants for cars, motorbikes and wheelchair accessible vehicles:

  • Scrap a car - £2,000
  • Scrap a car - £1,600 plus one adult-rate Annual Bus & Tram Pass
  • Scrap a car - £1,200 plus two adult-rate Annual Bus & Tram Passes
  • Scrap a motorcycle - £1,000
  • Scrap a motorcycle - £600 plus one adult-rate Annual Bus & Tram Pass
  • Scrap a motorcycle - £200 plus two adult-rate Annual Bus & Tram Passes
  • Scrap a wheelchair accessible vehicle (car or van) - £10,000
  • Retrofit a wheelchair accessible vehicle (van only) - £6,000

For vans and minibuses:

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  • Scrap a van - £7,000
  • Scrap a minibus - £9,000
  • Retrofit a van - £6,000
  • Retrofit a minibus - £6,000
  • Scrap a van and replace with an electric van - £9,500
  • Scrap a minibus and replace with an electric minibus - £11,500

Small businesses and sole traders can also receive up to £21,000 to scrap up to three vans, and charities are able to receive up to £27,000 in grants to scrap up to three minibuses.

The ULEZ expansion will mean all drivers in greater London with a non-compliant will be liable to pay the £12.50 daily charge. The ULEZ expansion will mean all drivers in greater London with a non-compliant will be liable to pay the £12.50 daily charge.
The ULEZ expansion will mean all drivers in greater London with a non-compliant will be liable to pay the £12.50 daily charge. | TfL/Google

Who is eligible for the scrappage scheme?

Prior to the most recent expansion, there was a criteria potential applicants had to meet in order to be eligible.

However, Mr Khan’s announcement in early August extended eligibility to every Londoner with a non-compliant car or motorcycle.

Wheelchair accessible grant payments are only eligible to those whose vehicle has been converted by mobility experts to enable a disabled person to access the vehicle as a driver or passenger.

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For any grant payment to scrap or retrofit your vehicle, it needs to have been registered with the DVLA to you or someone who lives with you since January 30, 2022. For anyone claiming disability benefits, it can also be registered to a nominated driver.

To apply and for further information on the criteria for car, motorcycle and wheelchair accessible vehicles, visit TfL’s webpage here.

The mayor of London, Sadiq Khan. Credit: Justin Setterfield/Getty Images.The mayor of London, Sadiq Khan. Credit: Justin Setterfield/Getty Images.
The mayor of London, Sadiq Khan. Credit: Justin Setterfield/Getty Images. | Getty Images

The scheme is also open to micro businesses (up to 10 employees), small businesses (under 50 employees), sole traders, and registered charities looking to trade-in their vans or minibuses.

As with other applicants, the business or charity must either be based in or be active within the 32 London boroughs or the City of London.

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Any light vans intending on being scrapped must be up to 3.5 tonnes, while minibuses must be up to five tonnes, and registered to an eligible organisation for more than 12 months prior to January 30, 2023.

The same weights apply to any replacement vehicles being applied for, as well as any vehicles you wish to retrofit.

All vehicles which are to be either scrapped or retrofitted must also be registered with the DVLA in the name of the business, sole trader or charity.

London-based small businesses, microbusinesses, sole traders and charities with new vans or minibuses ordered, or non-compliant vans or minibuses being retrofitted which will not be ready by the August 29 deadline, may be eligible for short-term grace periods.

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To apply and for more information on the eligibility criteria, visit the TfL webpage for vans and minibuses here.

Announcing the expansion to include all Londoners with non-compliant cars or motortcycles, Mr Khan said: “As we continue to build a greener and healthier London for everyone, I’m determined that no Londoner and no London business is left behind. We need to take people with us on the path to a sustainable future.

“We are ensuring that help is now available for everyone – and I urge Londoners to come and get it.”

What are the application stages?

There are two stages to applying for support via the scrappage scheme.

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The first is to apply online, providing evidence that you, or your organisation, qualify.

Once this is done, TfL says it aims to process the application within 10 working days, and will then email you letting you know if it has been approved.

The next step is to either scrap or retrofit the vehicle. This must be done at an Authorised Treatment Facility (ATF), a list of which TfL has on its website. The ATF may also pay to scrap the vehicle, in addition to the grant received from TfL.

You must then submit evidence of the vehicle being scrapped or retrofitted. If scrapped, this will be an image of the Certificate of Destruction provided by the ATF. If retrofitted, this will be an image of the CVRAS retrofit invoice and CVRAS vehicle installation certificate.

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As soon as the evidence is submitted and verified, TfL will process your grant payment cheque.

What about discounts and exemptions?

Some drivers and vehicles will also be able to apply for some form of discount of exemption from the ULEZ charge.

These include vehicles for some disabled people, London-licensed taxis, and minibuses used for community transport.

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