With the looming Ultra Low Emission Zone expansion due to hit the city of London on the 29th of August 2023, there is growing pressure on Londoners to meet the strict emissions standards. Throw in a global pandemic, and everyone’s purse strings are feeling tighter than ever.
Since the scheme initially started in April 2019, daily costs have hit an all-time high to live and work in the city. To alleviate the stress of upgrading your vehicle, TfL (Transport for London) have tried to ease the financial strain with a generous Scrappage Scheme
Here’s what the Scrappage Scheme looks like in a nutshell:
Who can apply?
Like all government schemes, not everyone makes the final cut. Before you can even apply for the Scrappage Scheme grant, you need to check your eligibility.
To receive the grant, you have to meet all of the following criteria:
- Live within one of the 32 London boroughs or the City of London
- Receive certain means-tested and/or non-means-tested disability benefits
- Your vehicle doesn’t meet the ULEZ emissions standards
So if you are receiving Universal Credit, Carer’s Allowance, Child Tax Credit, or Working Tax Credit, you can apply.
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.
What does the grant cover?
Essentially, two payments are available under the scheme for you to purchase a ULEZ compliant vehicle.
- To scrap a motorcycle or moped – £1,000
- To scrap a car – £2,000
As the scheme is in place to upgrade your vehicle, it’s worth doing some research ahead of the game to get the most for your money.
Before applying, your vehicle must be DVLA registered to you or someone who lives at your address. It also must have been owned by the applicant for more than 12 months, before the 23rd of October 2019. Your vehicle must be insured, taxed and up to date with its MOT.
What do I need to apply?
First off, you will need to present evidence of your eligibility. This will need to include documents about your current vehicle and the benefits you receive.
Proof of ownership
The TfL requires you to submit the following up-to-date information about your vehicle:
- V5C logbook – registration document
- Insurance certificate
- MOT certificate
For those applying for a vehicle registered under the name of someone who lives at your address, you will need to provide evidence that they live with you. This can be a bank statement, driving license or utility bill. Make sure that it has their name and both of your registered addresses on the document.
Proof of benefits
Along with your proof of vehicle ownership, you will need to submit the following up-to-date information about any benefits you claim:
- Your most recent rewards letter (within the last 12 months)
OR
- You can screenshot your full Universal Credit service statement
If your documents do not include your address, you will need to submit proof with either a bank statement, utility bill or your driving license.
Create a London road user charging account
While submitting your application, you can create a London road user charging account. The account holder must be the named benefit recipient and match the address of your benefit proof and vehicle ownership proof.
The application is pretty straightforward, as it only has two stages:
- Create your online application and submit via TfL. Here you will submit the information and evidence detailed above. Applications can take up to 10 days before you receive confirmation of your grant
- Approval and scrappage. Once your application has been approved, you can scrap your vehicle at an authorised treatment facility. There you will receive a Certificate of Destruction that you will need to return to the TfL to receive your grant
Other vehicles that are included in the scheme
Vans and minibuses
The scrappage scheme also covers vans and minibuses with a grant of between £7,000 – £9,500.
At the time of writing, van applications are currently suspended due to unprecedented demand and limited funds. If you have already submitted your application and received your eligibility letter, you can continue to scrap your vehicle and submit your evidence to receive your grant.
Heavy vehicles
Like the limited funds and high demands for the van scrappage scheme, there is currently a suspension on applying for the heavy vehicle grant of £15,000. This includes ULEZ non-compliant HGVs, buses, coaches and minibuses over 5 tonnes GVW, vans and other specialist vehicles over 3.5 tonnes GVW.
Again, if you have already applied and received your eligibility letter, you can continue to scrap your vehicle and submit your evidence to receive your grant payment.