ULEZ scrappage scheme expanded to all Londoners

London Mayor Sadiq Khan has announced that eligibility for a scrappage scheme has been extended ahead of the expansion of the Ultra Low Emission Zone (ULEZ) this month.

The scrappage scheme, designed to ease the financial burden on those switching to cleaner vehicles, gives non-compliant drivers £2,000 (US$2,456) towards replacing their vehicle. It was initially only open to those entitled to means-tested benefits but has now been extended to all Londoners.

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, and retrofit grants will increase from £5,000 to £6,000.

In order to fund the expansion, Mayor Khan plans to use £50 million of City Hall’s reserves, bringing the total scrappage fund from £110 million to £160 million.

Khan said: “As we continue to build a greener and healthier London for everyone, I’m determined that no Londoner and no London business is left behind.

“We need to take people with us on the path to a sustainable future. We are ensuring that help is now available for everyone – and I urge Londoners to come and get it.”

The scheme will be operated on a ‘first come, first served’ basis, but is unlikely to cover the number of non-compliant vehicles across London, which automotive services group RAC estimates could be over 850,000.

Neither City Hall or TfL would comment on the specific number of non-compliant vehicles in London beyond that nine out of ten cars seen driving in outer London on an average day are ULEZ compliant.

ULEZ controversy

The announcement comes amid political pressure over ULEZ.  At the end of July, five London borough councils lost a High Court challenge against the expansion of the ULEZ area to the whole of London, which is set to come into effect on 29 August.

Under the scheme, which aims to improve air quality in the capital, drivers will face a £12.50 daily charge if they don’t meet ULEZ requirements. This includes: motorbikes that do not meet Euro 3 standards (pre-2007 models); petrol cars and vans that do not meet Euro 4 standards (pre-2006 vehicles); and diesel cars and vans that do not meet Euro 6 standards (pre-2015 vehicles).

Buses, coaches and lorries will also need to meet or exceed the Euro VI standard, or pay £100 a day to drive within the zone.

The five council leaders who took the case to court pledged to “continue to fight”, saying they would now push the UK government to change the law to force London Mayor Sadiq Khan to consult them on the continuation or expansion of the scheme.

Following the High Court decision, UK Prime Minister Rishi Sunak also weighed in on the issue, saying Mayor Khan should “think twice” on his plans to expand the ULEZ, saying the move was an “unnecessary extra tax” when inflation was “causing a hassle”.

He added it would put a “burden” on families when they “visit the supermarket, take their kids to school, go to see their doctor”.

Khan said: “I have always said that expanding the ULEZ to the whole of London was a difficult decision, and not one I took lightly – but it’s a decision I remain committed to seeing through.

“I’m not prepared to step back, delay or water down vital green policies like ULEZ, which will not only save lives and protect children’s lungs by cleaning up our polluted air but help us to fight the climate crisis.”

Image: London Mayor’s Office