<iframe src="https://www.googletagmanager.com/ns.html?id=GTM-WCK3FXN" height="0" width="0" style="display:none;visibility:hidden" title="gtm-frame"></iframe>New scrappage scheme to support expansion of London's Ultra-Low Emission Zone | Trade Direct Insurance
Need a hand? Get expert support on your cover from a real human
0800 0280 380 or

New scrappage scheme to support expansion of London's Ultra-Low Emission Zone

23 January 2023

A new vehicle scrappage scheme will be launched on 30 January 2023 to help Londoners prepare for the expansion of the Ultra Low Emission Zone (ULEZ) across all London boroughs later in the year.

A new scrappage scheme is being launched on 30 January that will provide grants to drivers that scrap their older vehicles and use cleaner, greener vehicles. Only eligible applicants with vehicles that do not meet the ULEZ emissions standards will qualify for the new Transport for London (TfL) scrappage scheme.

The new van and minibus scrappage scheme for sole traders, micro-businesses (less than ten staff) and charities will provide a £5,000 grant for scrapping a van, a £7,000 grant for a minibus, or to replace a van or minibus with a fully electric vehicle (£7,500 and £9,500 respectively).

The Mayor of London announced the to help clean the city's air. London's ULEZ zone will expand to include all London boroughs from 29 August 2023.

ULEZ Charges

Driving a van that does not meet the emissions standard within the ULEZ will cost drivers and companies £12.50 a day, 24 hours a day, seven days a week. This charge applies to individual vehicles and includes resident drivers living within the expanded London ULEZ zone. When driving within the central London zone, drivers will have to pay the ULEZ and Congestion Charge.

All new diesel vans sold from September 2016 and petrol vans registered from January 2006 should meet the ULEZ requirements. Drivers can check whether their vehicle meets the ULEZ emissions standards via the link.

AutoPay and Penalty Charge Notice changes

Van drivers will benefit from the removal of the £10 annual fee to register a vehicle for Auto Pay ULEZ charges. Auto Pay lets drivers who register their vehicles avoid the risk of forgetting to pay the daily ULEZ charge and incurring a penalty charge. Registering for AutoPay is worthwhile because the value of ULEZ and Congestion Charge penalty charges incurred will increase from £160 to £180 (reduced by 50% if paid within 14 days).

Healthier air quality

According to the mayor's office, the largest number of air pollution related deaths sit within the city's outer boroughs. Expanding the ULEZ area next year is designed to achieve a 10% reduction in NOx emissions from cars and vans in outer London. It's also believed that the London-wide ULEZ will see the number of vans not meeting the standard on London streets each day dropping from 42,000 to 26,000 – a significant number.

Scrappage schemes outside London

Currently, the following city council and manufacturers are offering a scrappage scheme: London's TfLBirmingham City CouncilScottish GovernmentKiaRenault.*

Birmingham's vehicle scrappage and travel credit scheme offers a grant which can be used for a 'travel credit' on trains, buses and Metro or to buy a new car that meets the requirements of the Birmingham Clean Air Zone.

Dealerships such as Kia, Lexus and Renault also offer scrappage schemes, but most are only available for a limited period, so drivers can check the latest offers on websites like AutoTrader.


Trade Direct is authorised and regulated by the Financial Conduct Authority. The company is a leading UK independent broker providing a wide range of policies to tradesmen and construction workers.

This note is not intended to give legal or financial advice, and, accordingly, it should not be relied upon for such or regarded as a comprehensive statement of the law and/or market practice in this area. In preparing this note we have relied on information sourced from third parties and we make no claims as to the completeness or accuracy of the information contained herein. You should not act upon information in this bulletin nor determine not to act, without first seeking specific legal and/or specialist advice. We and our officers, employees or agents shall not be responsible for any loss whatsoever arising from the recipient’s reliance upon any information we provide herein and exclude liability for the content to fullest extent permitted by law.

Share this story

Popular products

Trade Direct Insurance Services Limited (company number 1580129). Registered office Mill Pool House, Mill Lane, Godalming, Surrey, GU7 1EY. Trade Direct Insurance Services Ltd is authorised and regulated by the Financial Conduct Authority (FCA), firm registration number 307734. You can check this by visiting the FCA website at www.fca.org.uk/register or by contacting the FCA on 0800 111 6768

© Trade Direct Insurance Services Ltd; All Rights Reserved.