The Mayor announced that tens of thousands more Londoners, including all those receiving child benefit and small businesses in the capital, will be eligible for financial support to replace polluting vehicles from the end of July. This is part of a major extension of London’s biggest ever scrappage scheme ahead of the Ultra Low Emission Zone (ULEZ) expanding across all London boroughs on 29 August 2023. 

Having listened to Londoners’ feedback over recent months and his determination to support as many Londoners as possible to transition to cleaner vehicles, the Mayor has announced the scheme run by TfL will be extended. The changes for businesses include:  

• Allowing London-registered businesses with fewer than 50 employees to apply for the scrappage scheme. Currently, only those with up to 10 staff can apply.  
• Introducing a new 6-month maximum grace period for sole traders, microbusinesses, small businesses, and registered charities that have ordered brand-new compliant vehicles, but have been informed that delivery will be delayed past 29 August when the larger zone goes live.
• Introducing a new 3-month maximum short term grace period for sole traders, microbusinesses, small businesses, and registered charities if they have booked an approved retrofit appointment for a non-compliant light van or minibus before 29 August. 

Eligible organisations can apply for grants of £5,000 to £9,500 to scrap, or in some cases retrofit, their older, more polluting vans and minibuses.

Businesses can also benefit from deals on van hire and financing, car and van clubs, and cargo bike purchases, whether they are eligible for a scrappage grant or not.

The vast majority of vehicles in the capital are already ULEZ-compliant, so most Londoners will not need to pay the ULEZ charge, change their vehicle or retrofit their van or minibus. The latest data shows that 9 out of 10 cars, and around 8 out of 10 vans seen driving in the zone on an average day are already compliant. Check if your vehicle meets the ULEZ standards.