Mayor of London Sadiq Khan is closing the ULEZ scrappage scheme on 7 September, marking a blow to car and van operators.
Transport for London (TfL) has called for final scrappage scheme applications as it confirms plans to wind the scheme down after committing more than £186m across almost 54,000 applicants. This was on top of the £61m for the central and inner London ULEZ, which led to more than 15,000 successful applications.
Launched in 2023 and expanded for the ULEZ expansion, the scrappage scheme provides grant payments to scrap, donate or retrofit vehicles that do not meet the emissions standards and switch to cleaner modes of transport.
With application volumes now considerably lower after more than 18 months of operation, the scheme is now being axed.
Any application made before the proposed deadline of 23:59 on 7 September is guaranteed to be processed while grace periods for community transport and disabled Londoners remain open until October 2027.
TfL says the scheme has been successful in helping drivers to switch to compliant and greener modes of transport. Its data reveals the scrappage grants for the expanded outer London area supported 36,008 Londoners to scrap their non-compliant car or motorcycle, totalling £69,502,200 in grants.
TfL has also approved 17,936 applications to scrap or retrofit a van or minibus, totalling £116,587,500 in grants. And 17,704 small businesses, including sole traders, have had their applications approved, totalling £114,871,000 in grants.
TfL figures also state that the first six months following the London-wide expansion of the ULEZ saw NOx emissions savings from cars and vans fall by the equivalent of removing 200,000 cars from the road for one year.
Overall, roadside NO2 concentrations in outer London are estimated to be 21% lower than without the ULEZ while vehicle compliance levels in London now stand at over 96%.
Christina Calderato, TfL’s director of strategy, said: “We have seen enthusiastic take up of the scrappage scheme after it was opened to all Londoners. With the vast majority of those needing support to adapt to the ULEZ having already taken action and nearly 54,000 thousand applications approved, demand for the scheme is now much lower. We encourage anyone who still needs support to submit their application before 8 September. Any remaining funds will then be considered for other proposed uses to further the Mayor’s Transport Strategy.”
Following the planned winding down of the scheme, Mayor is also proposing to make a donation to British Ukrainian Aid to enable vehicles to continue being sent to Ukraine.
The Clean Cities campaign said the scrappage scheme had been a lifeline for many and warned that removing the electric van grant at this time, especially coupled with the upcoming removal of the congestion charge exemption next year, did not send the right signal.
Oliver Lord, head of strategy & UK at Clean Cities, said: “Van emissions in the UK are substantial and continue to rise. At the very least, the Mayor should keep the electric van grant alive and explore other innovative ways to use it, such as social leasing schemes. This approach would put London back on the front foot, establishing the capital as leaders in sustainability business practices and zero emission mobility.”
Clean Cities data published in June found that just 2% of combustion vans scrapped under the London ULEZ scrappage scheme had been switched to electric vehicles to date, despite the millions of pounds of funding being put aside.
Its analysis of TfL data revealed that of the 16,579 approved applications to scrap a petrol or diesel van between January 2023 to May 2024, only 372 were replaced with an electric vehicle.
Clean Cities’ Clean Cargo Capital initiative is pushing for faster uptake of electric- or pedal-powered commercial vehicles in London.
The campaign, launched earlier this summer, called on Mayor Sadiq Khan to improve incentives for businesses to switch to electric vehicles, such as reviewing and reprioritising the ULEZ scrappage fund and extending the Congestion Charge Cleaner Vehicle Discount for SMEs, ride-hailing, and car-sharing services until late 2027.
