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ULEZ scrappage scheme

Here's how you can benefit from new scrappage scheme grants, designed to help London drivers prepare for the ULEZ expansion.

Last updated on 29 August 2023 | 0 min read

London's Ultra-Low Emission Zone (ULEZ) has officially expanded to cover all boroughs, after the Mayor of London, Sadiq Khan, vowed to do so from 29 August 2023.
To support drivers in making the switch to a ULEZ compliant vehicle, they have also announced that the London Scrappage Scheme will be expanded and that scrappage grants of up to £2,000 will be available to every single Londoner with a non-compliant car or motorcycle. Further to this, the scrappage payment for vans will increase from £5,000 to £7,000. Small businesses and sole traders will be able to scrap three vans or minibuses in addition to increasing retrofit payments from £5,000 to £6,000. Additional support will also be available to charities with increased payments available for minibuses from £7,000 to £9,000, and disabled Londoners will see wheelchair adapted vehicle grants double.

What is ULEZ?

The ULEZ (Ultra-Low Emission Zone) was originally introduced in 2019 and applies to cars and motorcycles. ULEZ charges are applied to:
• Diesel cars and vans that don’t meet Euro 6 Standards • Petrol cars and vans that don’t meet Euro 4 Standards • Motorbikes that don’t meet Euro 3 Standards It is designed to improve air quality and reduce emissions in Greater London. You can learn more about ULEZ, and other Clean Air Zones proposed for the UK here.

What’s changing?

The scrappage scheme is being expanded to better support to every Londoner affected by ULEZ. A number of improvements and changes have been made, as follows:
From Friday, 4 August: • Small businesses and charities with a non-compliant van will receive increased payments of £7,000 (up from £5,000) • Grants for Wheelchair Accessible Vehicles will increase from £5,000 to £10,000 • Grants for scrapping Minibuses will increase from £7,000 to £9,000 • Grants to Replace a non-compliant van with electric van increase from £7,500 to £9,500 • Grants to replace a non-compliant minibus with an electric minibus increase from £9,500 to £11,500 • Retrofit grants increase from £5k to £6k, typically enough to cover the whole cost of retrofitting From Monday, 21 August: • Every Londoner with a non ULEZ-compliant car will be eligible for a £2,000 grant • Small businesses and sole traders will be able to receive up to £21,000 in grants to scrap up to three vans • Charities will be able to receive up to £28,000 in grants to scrap up to three minibuses You can learn more about scrappage schemes here.

Finding ULEZ compliant cars

To drive through ULEZ without paying a charge, vehicles will need to meet the following emissions standards:
• Petrol cars must meet Euro 4 emissions standards. Most, if not all, petrol cars registered since January 2006 meet these standards. Petrol cars that meet Euro 5 and Euro 6 standards are also exempt from paying charges. • Diesel cars must meet Euro 6 standards. Almost every diesel car registered since September 2015 meets these standards, though some earlier models do too. • Hybrid cars must meet the same standard as petrol or diesel cars. So petrol hybrids (the most common type), must meet Euro 4 standards and diesel hybrids must meet Euro 6 standards. • All electric cars are ULEZ compliant, as they produce zero tailpipe emissions. As the driver, it’s your responsibility to check you’re compliant. You can use the Government’s clean air zone tool to see whether you’ll need to pay - you’ll need your number plate to start. You can learn more about ULEZ-compliant cars here, and start searching for compliant cars using the links below: • Search for electric carsSearch for compliant petrol vehiclesSearch for compliant diesels

What else can I do with my current car?

Used as the sole source of funding for your next car, the £2,000 scrappage scheme grant may limit your choices in the Greater London area (although there are nearly 5,000 ULEZ compliant cars for sale for under £2,000, with more being added all the time).
If you can add to that £2k sum, you’ll have more choice, with a bigger budget giving you more options including second-hand electric cars, which now start from around £5,400. You could also explore leasing and car finance options, with the £2,000 going towards a deposit. Again, this opens a door for you to explore electric as an affordable option, with some great electric car leasing deals available at the moment. You can also explore selling your car – it’s no secret that used car prices have gone up (we’re now at 40 months of consecutive price growth) so you could get more money by selling your car. In any case, it’s worth a valuation on your car before you make a decision so you know exactly where you stand. You can get a free, no-obligation valuation here.

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