ULEZ Scrappage Scheme 2023 Explained

Monday 3rd April 2023

As part of the new UK Scrappage Scheme, you can exchange your old diesel or petrol car through a car scrappage scheme for a new ULEZ compliant car. In this guide we’ll explain the ULEZ Scrappage scheme, and what it means for drivers.

What is a scrappage scheme?

The first vehicle scrappage scheme was introduced by the UK Government in 2009. Its main purpose is to encourage motorists to part-exchange their existing non-eco-friendly car for a new eco-friendly one, through cash incentives.

What is the ULEZ Scrappage Scheme?

The ULEZ scrappage scheme is the scrappage scheme introduced by the Mayor of London to help Londoners to prepare for the expansion of the Ultra Low Emission Zone (ULEZ) across all London boroughs from 29 August 2023.

The cost of driving a vehicle that is non-compliant with the ULEZ emissions standards will cost a daily charge of £12.50. This includes people who live inside the ULEZ zone.

Who can benefit from the scrappage scheme?

Your eligibility for the ULEZ Scrappage Scheme largely depends on where you live and work. Other factors include how much you earn and if your vehicle meets current ULEZ standards. Also, if you’ve benefited from this or another ULEZ scrappage scheme before, you can’t apply for the same scheme again.

The current eligibility factors include:

• You must be a resident of one of the 32 London boroughs or the City of London
• You must receive one or more of the following low income or disability benefits:
  • Universal Credit
  • Disability Living Allowance
  • Working Tax Credit
  • Pension Credit
• Your vehicle must not meet the current ULEZ standards which are:
  • Euro 3 for motorbikes
  • Euro 4 for petrol cars
  • Euro 6 for diesel cars

You can also be eligible for the ULEZ scrappage if you run a micro business or charity that operates in London. To qualify, your business must comply with the following requirements:

• Employ no more than 10 employees
• Turnover must not exceed £632,000

Eligible vehicles for businesses can be either light vans (under 3.5 tonnes) or a minibus (under 5 tonnes) that don’t meet the ULEZ emissions standards.

If you want to check whether your vehicle is eligible for the ULEZ scrappage scheme, you can check on the TFL site here.

What do you get in return for scrapping your vehicle?

There are several options for the grant pay out which include;

• Scrap a car - £2,000
• Scrap a car - £1,600 plus one adult-rate Annual Bus and Tram Pass
• Scrap a car - £1,200 plus two adult-rate Annual Bus and Tram Passes
• Scrap a motorcycle - £1,000
• Scrap a motorcycle - £600 plus one adult-rate Annual Bus and Tram Pass
• Scrap a motorcycle - £200 plus two adult-rate Annual Bus and Tram Passes
• Scrap a wheelchair accessible vehicle (car or van) - £5,000
• Retrofit a wheelchair accessible vehicle (van only) - £5,000

Buying an electric or hybrid vehicle?

If you’re making the switch from a petrol or diesel vehicle to an electric or hybrid vehicle, you may have lots of questions such as how to charge them and how they work or even if they need special tyres. You might also be confused as to how a hybrid service is carried out in comparison to their diesel or petrol counterparts.

Here at Formula One Autocentres, we’re experts on all your automotive needs, whether that be servicing and MOTs or tyres, so you know your vehicle is in safe hands. Find your nearest centre today.