The ULEZ zone has been a scheme that many Londoners have had to navigate since its inception. Over time, the area contained within the ULEZ zone has grown and expanded from the city’s centre to now include all London boroughs, stretching far into different counties.
During the course of the ULEZ’s implementation, the government has provided some financial support to help those living in the ULEZ afford a new car compliant with the regulations. At the start of 2023, a new form of support was announced, named the ULEZ scrappage scheme.
Although there has been a scheme of this name before, this plan is slightly different and designed to help more people who are impacted by the ULEZ expansion in August of 2023.
Here’s everything you need to know about the new scrappage scheme, who can access the support, and more details on how helpful it can be.
Since the ULEZ zone was first created in April 2019 by Major of London Sadiq Khan, the local government has always run a scrappage scheme. This is where specific individuals and businesses with a registered address in London can get a grant when scrapping their car to pay for a new one.
The purpose of the scrappage scheme was to help Londener’s afford to replace their current, non-compliant car with one that has emissions under the restrictions. Since its inception, the old scrappage scheme has helped over 15,000 people get a compliant vehicle and save money by not having to pay the charge.
In late 2022, it was announced that the area within the ULEZ zone was expanding, with the current scrappage scheme halting alongside that announcement. Instead, a revamped strategy was announced around the same time, giving greater aid to the various new people affected by this expansion.
The new scheme doesn’t differ much from the one it replaced, with the only significant difference being that it’s now split into two separate schemes: one for individuals wanting to scrap cars and motorbikes and another for micro-businesses who need to replace a non-compliant van or minibus.
It’s essential to be aware that the scrappage scheme is only eligible for some people. In fact, only a small minority of people will meet the various requirements to obtain the grant.
To qualify, you need to be on specific forms of low-income or disability benefits. In addition to that, you also need to live within one of the 32 London boroughs and own the car you want to scrap.
All these conditions mean that it can be pretty tough to get support. TFL themselves, the government organisation responsible for the scrappage scheme, believe that only 30,000 vehicle owners can access this payout.
TFL announced they had set aside £110m for the new scrappage scheme. Although this sounds like a lot, it does mean that if you’re late to apply, you can lose out on the chance to get support, as the scheme is operated on a first-come, first-served basis.
This amount isn’t only for car owners; instead, owners of cars, vans, motorcycles, and minibuses will all be competing for this money, illustrating that there may not be enough money to go around for everyone. This means that if you meet the requirements for this scheme, it’s important to apply early to ensure that you get the support you’re entitled to.
The maximum amount people can receive will alter and depend on the type of vehicle they own and its current worth. For car owners, you can get up to £3,000, motorbikes are worth up to £1,000, and owners of minibuses and vans can get around £5,000 – £9,000, depending on the size.
If everyone was to get their maximum amount, it’s clear that this money available would be depleted pretty quickly and won’t be enough to provide help to all the Londoners who are eligible for it. For example, if only 15,000 small businesses get their maximum grant of £5,000, there’s only enough money for around 11,600 car owners.
In June 2023, the eligibility for those who can apply for the scrappage scheme has been extended. Those receiving child benefits in London can also receive support, meaning thousands of extra residents can get support.
In addition to this, various businesses registered in London can, from June 2023, also get support when scraping ineligible company cars. This was originally only available for micro-businesses under 15 employees, but now businesses of up to 50 people can get support.
Charities can also access help, and announced alongside the Scrappage Scheme extension was a grace period available for businesses and charities retrofitting their vehicles that won’t be ready when the ULEZ expands.
| Vehicle | Scrappage Scheme Grant |
|---|---|
| Motorbike below Euro 5 standard | £1,000 |
| Petrol car below Euro 4 standard | £2,000 |
| Diesel car below Euro 6 standard | £2,000 |
| Non-compliant wheelchair accessible vehicle (WAV) | £5,000 to scrap or retrofit |
| Vehicle | Scrap Grant | Retrofit Grant | EV replacement grant |
|---|---|---|---|
| Non-compliant van | £5,000 | £5,000 | £7,500 |
| Non-compliant minibus | £7,000 | £5,000 | £9,500 |
From August 2023, the ULEZ zone is expanding to cover the same area as the current low-emission zone. This expansion will mean that the ULEZ zone will creep beyond its current boundaries of the North and South Circular and affect many suburbs and residential areas of London and the greater area too.
It’s believed that out of all the people who live in these new ULEZ areas, 15% of all the vehicles will not comply with the ULEZ standards, meaning that they’ll either have to pay more money to drive the car or upgrade to a compliant vehicle.
Another thing to consider is that many people who don’t live in the new ULEZ zone will also be affected by this expansion, yet won’t be able to access any government support, even if they’re receiving the required benefits.
For example, the boundary on the new ULEZ zone within Essex includes major hubs such as Romford and Hornchurch yet ends just before the town of Brentwood. Although this means that people in Brentwood can drive freely in their town, any trips just a few miles westwards towards London will put them into a ULEZ zone, demonstrating that even if you’re not in the ULEZ zone, the expansion can affect you massively.
What’s worse for those living in Brentwood is that because the town isn’t within a London borough, people with low incomes can’t get support from the scrappage scheme. If you live on the outskirts of the new zone, it’s essential to consider how it may affect you and work out a plan to see if it’s worth getting a ULEZ compliant car.
You can only access the ULEZ scrappage scheme if you live in one of the 32 London boroughs or the City of London, and you must receive certain benefits from the government to access this support.
In addition, you need to be an owner of a car that isn't ULEZ compliant, and the car must be registered with you or someone that shares your address.
You can also access the scrappage scheme if you own a business within the 32 boroughs of London and own a van or minibus that doesn't meet the standards used for work purposes.
If you're eligible for the scrappage scheme, you can get up to £3,000 for scrapping a car or up to £1,000 for scrapping a motorcycle. The amount you get will depend on how much the vehicle is worth, and you rarely get given the full amount.
When scrapping your vehicle, you are also offered the chance to accept a lower payment and one or two annual bus and tram passes, which could be a good option if you use public transport to commute around London.
When scrapping a van or minibus, you can get up to £9,500 depending on the size and type of vehicle.
Each time you drive into a ULEZ zone area with a car that doesn't meet the emission standards, you'll have to pay £12.50 for the day you enter the ULEZ zone.
Once you've entered it, you can go in and out as many times as you need to for the day without any additional charges, but be aware that once the date changes, you'll be charged again if you enter the zone.
For those living in London who need to commute to work or drive their car daily, having to pay a ULEZ charge each day you drive will cost you over £4,500 a year, making it a really expensive cost that you'll have to deal with.
Currently, the ULEZ zone encompasses all areas within the North and South Circular A-roads that run around the perimeter of the city of London. However, in August 2023, the zone is due to get larger and will now cover the same area that was previously the low-emission zone.
This means more suburbs and residential areas will fall into the ULEZ zone, affecting more people.
Unlike the original ULEZ scrappage scheme that ran from the Ultra Low Emission Zone's inception to the end of 2022, the new scrappage scheme is divided into two separate entities, and the one you can apply to depends on your circumstances.
For most motorists in London looking to benefit from the scheme, you'll likely be applying to the ULEZ car and motorcycle scrappage scheme. This is for Londoners on certain low-income or disability benefits that own cars, motorcycles and wheelchair-accessible vehicles that do not meet the ULEZ emission standards.
You can also apply to the ULEZ van and minibus scrappage scheme if you're a sole trader, owner of a micro business (which is a company with less than ten employees), or a charity registered at a London address and own a van or minibus that doesn't meet standards.
The maximum emission output your vehicle can produce will differ depending on the vehicle type and whether it's a petrol or diesel car.
For petrol cars, the emission output needs to be Euro Emission Level 4 or higher, whereas a diesel car needs to be Euro Level 6, the highest that a car can get. When your car is registered, it's tested to see what level it is, and each MOT will also check its emission output to ensure that it's still within the requirements.
For motorbikes, the emission level needs to be level 3 at the very least.
If your current car is in good condition and can get you a larger value when compared to what's offered by the scrappage scheme, then there's no harm in selling your car to get more money to allow you to afford a new alternative that's ULEZ compliant.
However, if you live in London and are selling your car to avoid ULEZ charges, you may find it difficult to find a buyer, as most other people in the area will be looking for a ULEZ-compliant car s that they can avoid any fees.
This is why the scrappage scheme can be so helpful, as it can help you move on your car for the money and allow you to sell quickly.
If you're not eligible for the scrappage scheme, the London government has partnered with many businesses in the area to offer discounts for those trying to get their ineligible cars off the roads.
For example, many subscription services for bikes and e-bikes offer money off, which can help you save, and there are also discounts with various car clubs that offer fleets that meet the ULE emission standards.
It's important to see what other help is out there, as most people living in London will not be eligible for the scrappage scheme.
There's yet to be an end date announced for the new scrappage scheme that was announced this year, meaning that you should be able to scrap your car whenever you can, providing that you meet the requirements for the scheme and that there's still money available.
If you own a car that doesn't meet the standards and can scrap the vehicle, be sure to check if you're eligible for any payment exemptions, as there are a lot of circumstances where you don't need to pay for a temporary period.
If your vehicle is for disabled people (who crucially have a blue badge), you may be able to access a grace period until October 2027, when you don't have to pay anything yet. The same is true if the vehicle has wheelchair access that an approved expert fitted.
If you're a licensed taxi driver, you don't have to pay any ULEZ charge as long as it's already been licensed. All new taxis need to be zero-emission vehicles. In addition, minibuses used for community transport also have a grace period up to October 2025.