London ULEZ scrappage scheme 2023

The Ultra Low Emission Zone (ULEZ) is a hot topic for many drivers in the UK right now. Whether you’re ‘for’ or ‘against’ the ULEZ being expanded across Greater London is an opinion dividing residents and businesses alike. No matter what your thoughts may be, the expansion is set to happen on Tuesday 29th August 2023.

To help London motorists prepare for the inevitable, the city’s Mayor Sadiq Khan has launched a new £110 million scrappage scheme which aims to enable drivers to scrap high polluting vehicles. In this article dedicated to the London ULEZ scrappage scheme 2023, we explain what the scheme is and how motorists can benefit in order to avoid the £12.50 daily charge… 

What is the London ULEZ scrappage scheme?

Launched by the Mayor of London Sadiq Khan from the 30th January, the 2023 ULEZ scrappage scheme is designed to provide financial support to help city residents prepare for the imminent expansion of the zone. The newly-launched scrappage scheme applies to cars, vans, minibuses, motorcycles and wheelchair accessible vehicles.

Here’s what amount of grant payment you could receive, depending on the type of vehicle you own:

• Cars - up to £2,000 per vehicle
• Motorcycles - up to £1,000 per vehicle
• Wheelchair Accessible Vehicles (WAVs) - up to £5,000 per vehicle
• Vans and Minibuses - between £5,000 to £9,500 per vehicle   

About ULEZ: From Tuesday 29th August, the Ultra Low Emission Zone will expand from its current boundary of inner London to reach the outer boundary of Greater London. As such, the area due to be expanded under ULEZ will cover all 33 London boroughs. You can find out more about the zone, ULEZ compliant and non-compliant vehicles and why the scheme is being opposed by reading our in-depth ULEZ expands across Greater London blog.   

Why has the London ULEZ scrappage scheme been introduced?

With the overall aim to clean up London’s toxic air, the ULEZ scrappage scheme 2023 is expected to enable the removal of thousands more polluting vehicles from the city’s roads. A similar previous scrappage scheme meant that 15,000 vehicles which were emitting pollutants were taken off the streets. Drivers of non-compliant ULEZ vehicles after the 29th August will be penalised and hit with a £12.50 daily charge.

Who can benefit from the London ULEZ scrappage scheme?

The new 2023 ULEZ scrappage scheme is in place to support Londoners (these are people who live within one of the 33 London boroughs - including the City of London) who fall within one of the following categories:

• Low income
• Disability benefits 
• Eligible micro businesses (those with 10 employees or less)
• Sole traders
• Registered London charities

It goes without saying that eligible applicants can only apply for the scrappage scheme if they currently own a vehicle that does not meet the ULEZ emission standards. For a vehicle to be ULEZ compliant, it must be one of the following:

• EURO 3 - the standard for motorcycles and mopeds
• EURO 4 - the standard for petrol fuelled cars, vans, minibuses and specialist vehicles
• EURO 6 - the standard for diesel powered cars, vans, minibuses and specialist vehicles

Are you unsure if the vehicle you drive is compliant with current ULEZ standards? It’s really simple to check online thanks to the Transport for London (TfL) ULEZ vehicle checker tool.

How to apply for the London ULEZ scrappage scheme

Are you eligible for the 2023 London ULEZ scrappage scheme? If so, qualifying residents and business owners need to identify which one of two ‘sub-schemes’ they fit into:

1 - The ULEZ car and motorcycle scrappage scheme

Select the ULEZ car and motorcycle scrappage scheme if you are an eligible Londoner with low income or on disability benefits and own a car (including a WAV; wheelchair accessible vehicle) or motorcycle. 

2 - The ULEZ van and minibus scrappage scheme

Select the ULEZ van and minibus scrappage scheme if you’re an eligible London-based sole trader, micro business or charity which owns a van or minibus that does not meet ULEZ emission standards. 

The application process is entirely online so you’ll require access to a desktop computer, tablet or smartphone that is connected to the internet. Please bear in mind you will be expected to upload evidence to prove a) who you are and b) that you’re eligible.

It’s worth noting that if you were awarded a payment under the previous TfL scrappage scheme, you will not be able to apply for the 2023 version.

Are there any other ULEZ discount schemes available?

Although it’s not just about applying for a grant to scrap a non-compliant ULEZ vehicle, there are a number of organisations that have launched their own ULEZ-inspired schemes to support Londoners who will be affected by the zone being expanded. 

From discounts on bikes (including cargo bikes, e-bikes and e-scooters) to money off car club vehicles, you can take advantage of many offers that will help get you from A to B. Check out the ULEZ support offers page over on the TfL website to find out more.      

Upgrade to a ULEZ compliant vehicle through Octane Finance

If you’ve secured a grant to scrap your non-compliant vehicle, then why not consider purchasing a new car, van or motorcycle on finance. Not only can finance allow you to pay for a new or used vehicle over a set period of time, but it could also help you afford a higher spec of car, van or motorbike. 

As an experienced broker working exclusively with lenders who specialise in providing automotive finance, we are best-placed to source the ideal finance solution to get you behind the wheel of your dream drive. Get in touch with our experienced team at Octane Finance to discuss what we can do for you.