Update 28/09/2020

Due to unprecedented demand and limited funds, the Scrappage Scheme is currently suspended for van applications. New applications are not being accepted until further notice.

Scrappage scheme for vans and minibuses

The Mayor of London has launched a scrappage scheme to help improve London's toxic air. It supports businesses with up to 50 employees to replace vehicles that don't meet the Ultra Low Emission Zone (ULEZ) standards.

Grant payment options

If you meet the eligibility criteria for vehicles and organisations you can apply for one of three funds:

Option 1: Scrappage for frequent users of the Congestion Charge area (£7,000)

The vehicle being scrapped must:

• Have been driven within the Congestion Charge zone at least 26 times between 22 August 2018 and 22 February 2019 (six months before the start of the scrappage scheme). This will be checked against existing transactions in your London Road User Charging account. For journeys made outside of Congestion Charge operational hours we will consider evidence of travel
• Be a pre-Euro 6 diesel light van (or charity-owned minibus) that doesn't meet the ULEZ standards

Option 2: Scrappage and purchase/lease of Euro 6 replacement (£7,000)

The vehicle being scrapped must be:

• A pre-Euro 6 diesel light van (or charity-owned minibus) that doesn't meet the ULEZ standards
• Replaced by purchase, lease or hire (for at least two years) with a Euro 6 diesel light van or Euro 6 diesel minibus (for charities only)

The eligible business must be registered at a Greater London address.

Option 3: Scrappage and contribution towards running costs (including insurance) of an electric vehicle (£9,500)

The grant payment is made up of £7,000 for scrapping ULEZ non- compliant vehicles plus a £2,500 contribution towards running costs (including insurance) of a replacement electric vehicle(s).

The vehicle being scrapped must be:

• A pre-Euro 6 diesel light van (or charity-owned minibus) that does not meet the ULEZ standards
• Replaced by purchase, lease or hire (for at least two years ) with an electric light van or electric minibus (for charities only)

For an eligible business not registered in Greater London the vehicle must also:

• Have been driven within the Congestion Charge zone at least 26 times between 22 August 2018 and 22 February 2019 (six months before the start of the scrappage scheme). This will be checked against existing transactions in your London Road User Charging account.
  
  For journeys made outside of Congestion Charge operational hours we will consider evidence of travel.

Refund of ULEZ charges

Successful applicants will be refunded any ULEZ charges paid for the scrapped vehicle(s) during the three months after their application was submitted providing they were paid via Auto Pay.

Organisation and vehicle eligibility

For Option 2 and Option 3, organisations must be able to prove that they're registered at an address in a London borough or the City of London.

Micro businesses must have:

• 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 in the UK OR be VAT registered in the UK

Small businesses must have:

• 50 or fewer employees
• An annual turnover of not more than £10.2 million OR a balance sheet total of not more than £5.1 million AND
• Companies House registration as an active company in the UK OR be VAT registered in the UK

Sole traders must be:

• A self-employed person who owns and operates a business as an individual

Charities must be an:

• Entity registered with the Charity Commission as an active charity

Vehicle(s) you intend to scrap must be:

• A van owned by an eligible business with up to and including 50 employees, or a minibus owned by a registered charity, for more than calendar 12 months before the start of the scrappage scheme on 22 February 2019
• Insured for business use
• Road taxed with a valid MOT
• Scrapped at an approved Authorised Treatment Facility (ATF)

The vehicle that you want to scrap must also fail to meet the ULEZ emissions standards.

Changes to LEZ emissions standards from 2021

Tougher LEZ emissions standards are due to come into force from 1 March 2021. The date will be reviewed and confirmed in October 2020 and any later start date published on our website.

This is to give affected businesses more time to meet the new standards as they face intense demands from the coronavirus pandemic.

Heavy vehicles including lorries, buses, coaches and specialist vehicles will need to meet Euro VI (NOx and PM) emissions standards or pay a daily charge to drive within the Greater London area.