UK: Everything you need to know about London’s Ulez scrappage scheme

August 21, 2023

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UK: Everything you need to know about London’s Ulez scrappage scheme

The Ulez will expand to all London boroughs from August 29.

All Londoners are now eligible for the Ultra Low Emission Zone (Ulez) scrappage scheme, meaning households with polluting vehicles can access up to £2,000 to replace them.

ULEZ will expand to cover all the capital’s boroughs on August 29.

Cars, motorbikes, vans and other vehicles which pollute the roads face a £12.50 charge each day they are inside the zone.

Many drivers who want to drive in London will have to sell or scrap their vehicles as they may not be compliant with the Ulez emissions guidelines.

However, support is available. Here’s everything you need to know.

What is the ULEZ scrappage scheme?

To help Londoners to prepare for the expansion, Mayor of London Sadiq Khan launched a scrappage scheme offering financial help to retrofit or scrap high-polluting cars.

Earlier this month, Khan expanded the the grant scheme, promising to spend an extra £50 million. Previously, £2,000 payments were previously only available to people who receive one of a series of benefits, including child benefit and universal credit. Now, everyone with a non-compliant vehicle is eligible, taking the total grant scheme cost to £160 million.

The expansion came after the Conservatives won July’s Uxbridge byelection, a win many attributed to the public’s concerns around the planned Ulez expansion.

Khan previously said expanding the Ulez will build “a better, greener, fairer, and healthier London for everyone” by tackling the threats of air pollution, the climate crisis, and congestion.

Air pollution can be linked to up to 4,000 premature deaths in London a year, according to research from Imperial College London in 2019.

The London Assembly said the expansion will save 27,000 tonnes of carbon dioxide in outer London as well as reducing nitrogen dioxide emissions by up to 10 per cent and reducing PM2.5 particulate matter emissions by 16 per cent.

Figures from the RAC suggest almost 700,000 drivers will have to pay the daily Ulez charge following the expansion, which comes into effect on August 29, and said it would have a “massive financial impact on motorists and businesses”.

The scrappage scheme, which the London Assembly said is the biggest scrappage scheme ever introduced in the UK, is designed to help those concerned with the cost associated with the Ulez expansion.

Not everyone is eligible for the scheme, however, so here’s everything you need to know about it.

What happens if I live in the Ulez?

The Ulez was first introduced to central London in 2019 and expanded to the edge of the North and South Circular boundary roads in 2021.

If you live and drive within the Ulez, you have to ensure your car complies with its emission guidelines.

The TfL website offers a system where people can check their registered licence plates to see if they are required to pay the Ulez charge.

Drivers whose cars do not comply must pay £12.50 per day to drive within the Ulez. TfL states around 35,000 drivers pay the Ulez every day now and estimates around 200,000 more drivers will have to pay each day after the expansion.

What cars are exempt from the Ulez?

Petrol cars built after 2006 and diesel cars built after 2014 automatically comply with the Ulez guidelines, but older cars may not as their engines will be more polluting.

The age of a car does not necessarily determine whether or not they are exempt as some older cars do have compliant engines too.

People driving cars over 40 years old are also exempt.

How does the Ulez scrappage scheme work?

Khan launched a £110 million scrappage scheme in January, providing grants of up to £2,000 for eligible drivers to scrap or retrofit their high-polluting, older cars or up to £1,000 for motorcycles from August. He expanded it earlier this month to make all Londoners eligible.

The expansion also increases the payments available to businesses and sole traders. Sole traders and businesses with fewer than 50 staff can now claim up to £7,000 for each van they replace (for up to three vans), a £2,000 increase on the previous figure. The previous sum of up to £7,000 for replacing a minibus has risen to to £9,000, and the grant to retrofit a van or minibus has risen from £5,000 to £6,000.

The London Authority states the scrappage scheme is designed to help people “switch to cleaner, greener modes of transport”.

The scheme is accepting applications here.

Bloomberg Philanthropies hosts the Partnership for Healthy Cities (PHC) Summit at the St. Pancras Renaissance Hotel in London, March 15, 2023. (Photo by Jason Alden)

The application form also requires proof of ID, proof of address, and the vehicle’s insurance details and log book.

Small businesses, and sole traders who want to apply for the scheme must also be registered within London’s 32 boroughs or the City of London and have fewer than 10 employees or less than £632,000 turnover annually. Charities must also be registered in the London area.

Disabled people and community transport vehicles have also been given discounts and exemptions on the Ulez charge until at least 2025 to allow them more time to change their cars.

Can you convert your car to be Ulez compliant?

The short answer is yes, you can convert your car to be Ulez compliant, but to do so can be expensive and complicated. Retrofitting a non-compliant vehicle would include upgrading the exhaust system or changing the engine.

Switching the engine would mean having to to tell the Driver and Vehicle Licensing Agency (DVLA) about the change and the car would need to undergo a road emissions test to find out what the engine’s emissions values are.

The work would also need to be done at a facility accredited by the Vehicle Certification Agency.

In addition to the cost of the work, the road emissions test is also very costly. The scrappage scheme’s grants can be used for retrofitting but people who are not eligible may find the cost too exorbitant.