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Extra scrappage support for van operators ahead of ULEZ expansion

Van operators in London can now access increased grant levels to scrap vans not compliant with the Ultra Low Emission Zone (ULEZ).

Small businesses and charities with a non-compliant van will receive increased payments of £7,000 (up from £5,000)

Announced ahead of the controversial expansion of the scheme to all London boroughs from 29 August, the enhanced scrappage programme increases the grant for vans from £5,000 to £7,000 for small businesses and charities with a non-compliant van. Small businesses and sole traders will be able to scrap three vans or minibuses in addition to increasing retrofit payments from £5,000 to £6,000.

Additional support will also be available to charities with increased payments available for minibuses from £7,000 to £9,000.

Grants to replace a non-compliant van with electric van increase from £7,500 to £9,500, while grants to replace a non-compliant minibus with an electric minibus increase from £9,500 to £11,500

Retrofit grants increase from £5k to £6k, typically enough to cover the whole cost of retrofitting.

Meanwhile, every Londoner with a non ULEZ-compliant car or motorcycle will be eligible for a £2,000 grant.

 

The extra support takes the previous £110m cost for the grants to £160m; the extra £50m is being paid out of City Hall’s reserves.

The announcement follows Labour’s defeat in last month’s Uxbridge byelection, with many – including Labour leader Sir Keir Starmer and his shadow team – blaming the loss on the Labour Mayor’s plans to expand the ULEZ.

Khan has now said he’s “not prepared to step back, delay or water down the ULEZ policy” – and pointed to the “toxic air damaging the health of millions of Londoners and the need to tackle the climate crisis”.

The scrappage scheme will be available on a first-come, first-serve basis. Car and motorcycle scrappage funds were initially prioritised for low-income and disabled Londoners to ensure those that needed it most had early access to support.

Alongside the scrappage scheme, a range of support offers are available for anyone making the transition to cleaner, greener transport, including savings on hire and subscription services for bikes, e-bikes, cargo bikes and e-scooters, and discounts on car clubs alongside many other deals.

The move came after the Mayor won a High Court battle, clearing the way for the scheme to roll out despite an attempt by five London councils to stop the expansion.

The scheme, which charges owners of older, more polluting vehicles £12.50 a day to drive them within the zone, will now progress as planned despite political pressure.

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Written by Natalie Middleton

Natalie has worked as a fleet journalist for over 20 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day.

Natalie edits all the Fleet World websites and newsletters, and loves to hear about any latest industry news.

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