London scrappage scheme opens up to other small businesses

The ULEZ scrappage scheme has been expanded so that all small businesses registered in London with fewer than 50 employees are eligible. Previously just sole traders and micro businesses with up to ten staff were eligible.

The Mayor of London launched the scrappage scheme in January 2023 to support London based smaller businesses, sole traders and charities, Londoners on lower incomes and disabled Londoners to replace their older, more polluting vehicles with greener alternatives.

The changes also include allowing all Londoners receiving child benefit to apply, as well as allowing charities operating in London to scrap or retrofit up to three vans or minibuses instead of just one.

There is also a new grace period for sole traders, microbusinesses, small businesses, and registered charities who have ordered brand-new compliant vehicles, but have been informed that delivery will be delayed past 29 August when the larger zone goes live – or if they have booked an approved retrofit appointment for a non-compliant light van or minibus before that date.

The scrappage scheme will be kept under ongoing review and the Mayor has also asked TfL to actively monitor applications from care workers to ensure they are benefitting from the money available.

The Mayor of London, Sadiq Khan, said: “The majority of vehicles in London are already ULEZ compliant and will not have to pay anything. But I completely understand the concerns of people who may not have a compliant vehicle and are worried about how they’ll make the transition.

“We already have the biggest-ever scrappage scheme in place to support Londoners on low incomes, London based micro-businesses and charities and disabled Londoners. But I’ve listened to families and small businesses in outer London who want more support and I’m pleased to be able to announce today a major expansion to the scheme run by TfL to ensure we can help them."