Mayor's ULEZ Scrappage Scheme Now Live
Mayor's scrappage scheme for non-compliant vehicles entering the ULEZ zone is now open for applications
21 March 2019
Ultra Low Emission Zone (ULEZ) goes live this April 2019
The cost of driving polluting vehicles in and out of London will continue to rise as a range of measures are introduced by Government and the Mayor of London to tackle poor levels of air pollution.
Subsequent London Mayors have introduced a range of punitive measures which are impacting significantly on businesses; the latest of these is the Ultra Low Emission Zone (ULEZ), which is designed to deter the most polluting vehicles from entering central London.
The ULEZ charges (if emissions standards not met) per vehicle
Daily charge: £12.50
Penalty charge: £160 (reduced to £80 if paid within 14 days)
The daily charge will run from midnight to midnight, 7 days a week, every day of the year.
These are in addition to any Congestion Charge or Low Emission Zone (LEZ) charge that apply. (Small vans up to and including 1.205 tonnes unladen weight are not subject to the LEZ.)
The Scrappage Scheme
In an attempt to assist small businesses with the cost burden of scapping polluting vehicles, the Mayor of London has launched a scrappage scheme. It will support micro businesses and charities as they prepare for the arrival of the ULEZ by providing a scrappage payment for each vehicle that is scrapped.
The minimum emission standards for compliant vehicles that won't be subject to the ULEZ charge are as follows:
Petrol: Euro 4
Diesel: Euro 6
The ULEZ will be enforced based on the declared emissions of the vehicle rather than the age, however:
- All new diesel vans sold from September 2016 should meet the Euro 6 standard
- All petrol vans registered with the DVLA from January 2006 meet the Euro 4 standard
Check your vehicle registration document to see your vehicle's Euro emission standard or NOx emissions. If these are not listed then use the Transport for London ULEZ vehicle checker.
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 Charging Zone (CCZ) (£3,500)
The vehicle being scrapped must:
Have been driven within the CCZ at least 52 times during the 6 months before 22 February 2019 - this will be checked against existing transactions in your London Road User Charging account
Be a pre-Euro 6 model light van (or charity-owned minibus) that does not meet the ULEZ standards
Option 2: Scrappage and purchase/lease of Euro 6 replacement (£3,500)
The vehicle being scrapped must be:
A pre-Euro 6 model light van (or charity-owned minibus) that does not meet the ULEZ standards
Replaced (by purchase or lease) with a Euro 6 light van or Euro 6 minibus (for charities only)
The micro business or charity must be registered at a Greater London address.
Option 3: Scrappage and contribution towards running costs (including insurance) of an electric vehicle (£6,000)
The grant payment is made up of £3,500 for scrapping eligible 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 model light van (or charity-owned minibus) that does not meet the ULEZ standards
Replaced (by purchase or lease) with an electric light van or electric minibus (for charities only)
For a micro business or charity NOT registered in Greater London the vehicle must also:
Have been driven within the CCZ at least 52 times during the 6 months before 22 February 2019 - this will be checked against existing transactions in your London Road User Charging account
Under Option 3 you can apply for a refund from ULEZ charges for the three months after you first apply for the scheme.