With London Mayor Sadiq Khan extending the Ultra Low Emission Zone (ULEZ) to cover more of London, a scrappage scheme has been set up to help Londoners with cars that will qualify for the charge, buy new vehicles that conform.
UPDATE: In the face of political and public pressure, the London Scrappage Scheme has been updated to include all Londoners with cars that do not comply with the ULEZ extension rules.
London Scrappage Scheme eligibility extended from 4 August
The new eligibility rules are as follows. The changes take place from 4 August.
- Scrappage grants of up to £2,000 will now be made available to all London residents with a non-compliant car or motorcycle
- Scrappage payments for vans will go up from £5,000 to £7,000. Small businesses and sole traders can scrap three vans or minibuses in addition to increasing retrofit payments from £5,000 to £6,000.
- More support will also be in place for charities with payments available for minibuses increasing from £7,000 to £9,000, and disabled Londoners will see wheelchair adapted vehicle grants double.
- Sadiq Khan will pay for the changes with £50m of City Hall’s reserves to fund these changes.
Is the scheme funded to pay for all Londoners with non-compliant cars or vans?
No. The scheme is on a first-come-first-served basis, with the total £160million pot only enough to fund payments to a small number of Londoners with non-compliant cars - so apply as soon as possible for the best chance of success.
Here we take a look at the scheme to help drivers of older vehicles work out if they can claim cash to help upgrade their vehicle ahead of the ULEZ scheme extending across London.
Will the updated London Scrappage Scheme help non-Londoners who need do drive into London for work?
The scheme does not cover those with older cars who need to drive in London, but don’t live in the capital. Workers with non-compliant cars must pay the £12.50 charge.
A smoky car could be forced to pay the London ULEZ but could the owner get money from the London Scrappage Scheme? (Credit: Pexels.com)
Where does the ULEZ currently operate and where is it expanding to?
At the moment, the ULEZ is in force over an area that covers up to – but does not include - the North Circular (A406) and the South Circular (A205) roads in London. The charge operates 24 hours a day, seven days a week – with Christmas Day being the only day the ULEZ charge is suspended.
The daily charge is from midnight to midnight - meaning nightshift workers such as care staff may need to pay the charge twice on a single shift – and is charged at £12.50.
However, the ULEZ is expanding to cover all London boroughs from August 29, 2023. This will see hundreds of thousands of vehicles being subject to scrutiny by Mayor Khan and his charging scheme for drivers entering the capital in older vehicles.
See a full map of the new ULEZ coverage here.
When does the London Scrappage Scheme start?
The new scheme will go live from 30 January and will offer schemes covering cash for cars, motorbikes, vans and minibuses.
Can anyone apply for scrappage scheme money to buy a new car?
No. Only London-based drivers who collect certain means-tested benefits or non-means-tested benefits will be entitled to apply for any money.
All other drivers from the capital and beyond will either need to finance a cleaner themselves, or pay the daily charge of £12.50.
Anyone who wants to apply for scrappage scheme money must be in receipt of one or more of the following benefits:
- Universal Credit
- Armed Forces Independence Payment
- Attendance Allowance
- Carer's Allowance
- Child Tax Credit
- Constant Attendance Allowance
- Disability Living Allowance
- Employment and Support Allowance
- Housing Benefit
- Income Support
- Industrial Injuries Disablement Benefit
- Jobseeker's Allowance
- Pension Credit
- Personal Independence Payment
- Severe Disablement Allowance
- War Pensions Mobility Supplement
- Working Tax Credit
How much money could I get from the London Scrappage scheme?
Providing you and your current vehicle qualify, you can expect to receive the following amounts under the London Scrappage Scheme
Applicants will be able to choose one of the following options:
- Scrap a car - £2,000
- Scrap motorcycle - £1,000
- Scrap a wheelchair accessible vehicle - £5,000
- Retrofit a wheelchair accessible vehicle - £5,000
Alternatively, successful applicants could also choose to swap the grant for an annual adult-rate bus and tram pass for one or two people in some cases.
Does my vehicle need to meet any conditions?
Yes. The scheme requires the vehicle being claimed against to meet certain conditions.
In order to apply, the vehicle must have VED road tax, MOT and insurance at the time of application. It must also have been registered to qualifying keeper for more than 12 months up to 30 January 2023 at the time the scheme launches.
Applicants will also need online access to upload a photo or scan of the vehicle’s V5C log book at the time of application.
Is there a London Scrappage Scheme for vans and minibuses?
Yes. Qualifying applicants will be able to get £5,000 for a van, £7,000 for a minibus, £5,000 to retrofit some vans and minibuses, or £7,500 to scrap a van and replace with a fully electric alternative, or £9,500 to do the same with a minibus.
Who will the van and minibus scrappage scheme be available to?
TfL has listed the following criteria for vans and minibuses to access the new scrappage scheme from 30 January.
Micro businesses with:
- 10 or fewer employees
- Up to £632k turnover or up to £316k balance sheet total in the preceding and current financial year and
- Companies House registration as an active company, or VAT registered, within the 32 London boroughs or the City of London
Sole traders who must be:
- A self-employed person who owns and operates a business within the 32 London boroughs or the City of London
Charities that are:
- Registered with the Charity Commission and active within the 32 London boroughs or the City of London
The vehicle you intend to scrap must be up to and including 3.5 tonnes Gross Vehicle Weight (GVW) for a light van, or up to and including 5 tonnes GVW for a minibus and be insured for business use.
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