A new vehicle scrappage scheme has been announced by the Mayor of London, Sadiq Khan, to help people in London prepare for the impending expansion of the Ultra Low Emission Zone (ULEZ) across London due to start on 29 August 2023.

If your vehicle doesn’t meet the ULEZ emission standards, you can apply for a grant to have it scrapped or retrofitted to make it ULEZ-compliant. If you are a wheelchair user and own a non-compliant wheelchair-accessible vehicle (WAV), the good news is that you can apply for a grant of up to £5,000, either for yourself or on behalf of a nominated driver if you don’t drive yourself. Here we’ll explain more about ULEZ, the new scrappage scheme and how you can check your eligibility before you apply.

ULEZ Expansion

Concerns over the last decade about air condition in the UK’s major cities have seen the government crackdown on highly polluting vehicles, especially in the capital.
ULEZ was first launched in 2019 and covered central London before expanding to inner London in 2022. The existing ULEZ has reportedly reduced harmful roadside nitrogen dioxide by 44% across central London and 20% in inner London. However, there are still several areas of London that continue to exceed safe and legal air pollution levels. ULEZ is now being extended again to cover most of Greater London, imposing a daily charge of £12.50 on older and more polluting vehicles. You can check if your vehicle meets the ULEZ emission standards on the Transport for London website.

Vehicle Scrappage Scheme

The new scrappage scheme launches on 30 January 2023 and is available to people receiving one or more means-tested or non-means-tested disability benefits, including:

  • Armed Forces Independence Payment
  • Attendance Allowance
  • Carer’s Allowance
  • Child Tax Credit
  • Constant Attendance Allowance
  • Disability Living Allowance (DLA)
  • Employment and Support Allowance
  • Housing Benefit
  • Income Support
  • Industrial Injuries Disablement Benefit
  • Jobseeker’s Allowance
  • Pension Credit
  • Personal Independence Payment (PIP)
  • Severe Disablement Allowance
  • Universal Credit
  • War Pensions Mobility Supplement
  • Working Tax Credit

The scheme will provide grants to eligible applicants living in one of the 32 London boroughs of the City and London to switch to greener transport by either scrapping or retrofitting their vehicle.

You’ll need to apply for the scheme online and upload evidence of your eligibility and identity. Your vehicle must also have valid MOT, insurance and road tax and be registered to you for over 12 months before 30 January 2023. You must also upload your vehicle’s V5C logbook.

You cannot apply to this new scheme if you have previously received a grant under another scrappage scheme.

Scrappage Scheme Options

If you are eligible for the scheme, you can select one of the options below that best suits your needs:

• Scrap your car and receive  up to £2,000
• Scrap your motorcycle and receive up to £1,000
• Scrap a WAV and receive up to £5,000
• Retrofit or convert a WAV to make it ULEZ compliant and receive up to £5,000

It’s worth noting that the price offered to scrap a WAV through the scheme may exceed a part exchange price from a trader. This means you may be able to order a Motability vehicle without requiring a grant.

Mobility credit options will also be available, including a lower payment and one or two adult-rate annual bus and tram passes. The bus and tram pass is non-transferable and non-refundable and will give you 12 months of unlimited travel on Transport for London trams and buses across the city.

If you’re planning to convert your WAV to make it ULEZ compliant, you must add the retrofit to the Clean Vehicle Retrofit Accreditation Scheme (CVRAS) register as an approved conversion. Retrofits are only approved for specific vehicle models, so you must check your vehicle qualifies with a CVRAS-approved supplier.

When the ULEZ van and minibus scrappage scheme launches, it will be open to:

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.

Summing Up 

If you live in London and rely on a WAV to get you from A to B, find out whether you can apply to the new ULEZ vehicle scrappage scheme. You can get a grant to have it scrapped or converted to be ULEZ-compliant and avoid a daily £12.50 charge which can soon mount up. Here at GowringsVersa, we have an extensive range of quality new, nearly new and used mobility vehicles for you to choose from. To find out more or get advice about applying to the Motability Scheme, contact our team at 0345 608 820 or online.

The scrappage scheme will launch and be open for applications on 30 January 2023, take a look at our ULEZ Compliant vehicles here


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