New scrappage scheme to support expansion of London's Ultra-Low Emission Zone
23 January 2023A 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 TfL, Birmingham City Council, Scottish Government, Kia, Renault.*
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.
*https://www.autotrader.co.uk/content/news/car-scrappage-scheme-uk
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