£110m vehicle scrappage scheme launches in London

The Mayor of London, Sadiq Khan, has launched a scrappage scheme worth £110 million to support Londoners on lower incomes, disabled Londoners, charities, sole traders and SME businesses to replace or retrofit their old, polluting vehicles.

There will also be exclusive offers for successful applicants of the scrappage scheme, such as 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, which will mean five million more Londoners will be able to breathe cleaner air. 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. As a new feature, 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. Disabled people can also apply for a nominated driver who lives at a different address if they do not drive themselves.

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).  

There is also further support for disabled people, through new and extended grace periods. Applications for the new grace periods also open today and the Mayor is encouraging everyone who is eligible to apply.

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.

The new disabled benefits grace period means that anyone who receives benefits that automatically make them eligible for a blue badge will also qualify for the new grace period. More Londoners currently claim benefits that would make them eligible for this grace period than currently hold a blue badge.