London launches major vehicle scrappage scheme in run up to August’s London-wide ULEZ expansion

Mayor of London Sadiq Khan has launched a £110 million scrappage scheme to support Londoners replace or retrofit their old polluting vehicles.

The scheme, which provides grants of between £2,000 and £9,500, is aimed at people on lower incomes, disabled Londoners, charities, sole traders and business with 10 or fewer employees.

To accompany the scrappage scheme, the Mayor and TfL are also announcing a host of ULEZ support offers to enable Londoners to benefit from discounts on subscriptions, rentals and purchases of bicycles, e-bikes, cargo bikes, cars and vans from companies including Brompton, Enterprise and Santander Cycles.

It follows the Mayor’s decision to expand London’s Ultra Low Emission Zone (ULEZ) London-wide in August this year. Already around 94 percent of vehicles seen driving in inner and central London, and 85 per cent of vehicles seen driving in outer London meet ULEZ standards, meaning the vast majority of drivers will not need to pay. The new scrappage scheme and grace periods will help drivers of the remaining non-compliant vehicles prepare.

Londoners receiving certain means-tested benefits and non-means-tested disability benefits can apply for cash grants of up to £2,000 to scrap their non-compliant cars or motorcycles. Successful applicants can choose to receive a higher value package comprised of up to two free annual bus and tram passes and a lower cash grant.

Disabled people who want to scrap or retrofit a non-compliant wheelchair accessible vehicle will be able to apply for grants of £5,000 to reflect the higher cost of these vehicles.

Charities, sole traders and business with 10 or fewer employees registered in London can apply to scrap a van (£5,000 grant) or a minibus (£7,000 grant), retrofit certain vans or minibuses (£5,000 grant) or scrap and replace a van or minibus with a fully electric vehicle (£7,500 or £9,500 grant respectively). 

The two new grace periods provide exemptions until October 2027 for recipients of certain disability benefits (or their nominated driver) and for all wheelchair accessible vehicles and some vehicles with other adaptations. The grace periods are available to all eligible people or a nominated driver regardless of whether they live in London, and they will apply to the current ULEZ zone as well.

New disabled benefits grace periods give exemptions until October 2027 meaning anyone who receives benefits that automatically make them eligible for a blue badge will also qualify for the new grace period.

The Mayor of London, Sadiq Khan said: “I took the difficult decision to expand the ULEZ because it will save lives, help tackle the climate crisis and reduce congestion. We have made huge progress in central and inner London but there is much more to do in outer London.

Clean air is a fundamental human right – and everyone deserves to breathe clean air including those in outer London. Around 4,000 Londoners are dying prematurely each year due to toxic air, with the greatest number of deaths attributable to air pollution in London’s outer boroughs.

“We need to get the most highly polluting vehicles off our roads, which are damaging the health of all Londoners, including drivers. The rising cost of living has been a key consideration for me, which is why we are launching this new and improved scrappage scheme – the biggest ever – to help them switch to cleaner vehicles, or support them to make the most of other transport options.

Alex Williams, TfL's Chief Customer and Strategy Officer, said, "Londoners are already choosing public transport, walking and cycling for the majority of trips and the Mayor’s new scrappage scheme, the largest of its kind, will support more people to get rid of their highly polluting vehicles and make the switch to greener travel.

"£110 million has been made available to support those Londoners that need it most to get rid of the dirtiest vehicles. These grants will play a significant role in ensuring smaller businesses, those on low incomes, disabled people and charities are fully prepared ahead of the expanded zone coming in later this year.