New London scrappage scheme announced ahead of ULEZ expansion

Transport for London (TfL) has introduced a new scrappage scheme that will offer motorists up to £5,000 to scrap or upgrade their vehicle in order to meet Ultra Low Emission Zone (ULEZ) requirements.

It’s based on a £110 million fund that will provide grant payments to applicants on low-income and disability benefits with vehicles that do not meet ULEZ requirements, ahead of the zone’s expansion in August.

Applicants with a wheelchair-accessible car or van can get up to £5,000, while drivers of a standard car can receive up to £2,000 to scrap their vehicle. Motorcycle riders can also receive up to £1,000 for scrapping their bike.

Applicants also have the option of receiving a combination of cash and annual bus and tram passes, too.

Drivers will need to live within one of the 32 London boroughs or the City of London and receive certain benefits in order to be eligible for the scheme. If an owner received a grant payment from the previous ULEZ car and motorcycle scrappage scheme, they cannot apply again.

Any vehicle in the scheme must be registered with the DVLA while having insurance, valid road tax, and MOT. Its owner must also have been the registered keeper 12 months prior to the launch of the scrappage scheme (January 30, 2023).

Drivers looking to take part in the scheme must be receiving one or more of a list of benefits which includes Universal Credit, Child Tax Credit and Housing Benefit, among others.

Sole traders, small businesses with up to 10 employees or charities with a registered address in London which operate a van or minibus that doesn’t comply with ULEZ standards can also get up to £9,000 to help scrap their current vehicle and replace it with an electric alternative.