TfL updates scrappage scheme ahead of August’s ULEZ expansion

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The Mayor of London has announced a new vehicle scrappage scheme to help eligible Londoners prepare for the expansion of the Ultra Low Emission Zone (ULEZ) across all London boroughs from 29 August 2023.  The scrappage scheme is open for applications from 30 January 2023.

TfL updates scrappage scheme ahead of August’s ULEZ expansion
Photo credits @ Iveco

Sadiq Khan says the £110 million scrappage scheme is intended to support, among others, sole traders and businesses with 10 or fewer employees. The imitative is to help these small companies replace or retrofit their old, polluting vehicles.

To accompany the scrappage scheme, Transport for London (TfL) is also announcing a host of ULEZ support offers from businesses, including additional exclusive offers for successful applicants of the scrappage scheme.

This will enable people and businesses to benefit from discounts on subscriptions, rentals and purchases of bicycles, e-bikes, cargo bikes, cars and vans from companies including Brompton, Enterprise and Santander Cycles.

The step follows the Mayor’s decision to make the Ultra Low Emission Zone London-wide in August this year.

“The health of Londoners must come first and I know that expanding the ULEZ London-wide, alongside this £110m scrappage scheme, will help us to continue building a greener, fairer and healthier London for everyone,” said the Mayor of London, Sadiq Khan.

Scrappage scheme details: what kind of vehicles can be scrapped, and what businesses are eligible for the scheme?

Charities, sole traders and businesses with 10 or fewer employees registered in London can apply to scrap a van (£5,000 grant) or a minibus (£7,000 grant), retrofit certain vans or minibuses (£5,000 grant) or scrap and replace a van or minibus with a fully electric vehicle (£7,500 or £9,500 grant respectively).

The van and minibus scrappage scheme has six options:

  • Scrap a van – £5,000
  • Scrap a minibus – £7,000
  • Retrofit a van – £5,000
  • Retrofit a minibus – £5,000
  • Scrap a van and replace with an electric van – £7,500
  • Scrap a minibus and replace with an electric minibus – £9,500

The vehicle businesses intend to scrap must be a light van (up to and including 3.5 tonnes gross vehicle weight (GVW) or minibus (up to and including 5 tonnes GVW) registered to an eligible organisation for more than 12 calendar months before the start of the scrappage scheme on 30 January 2023

It has to be registered with the Driver and Vehicle Licensing Agency (DVLA) in the name of the business, sole trader or charity (if the vehicle is registered to an employee, director of the micro business or trustee of a charity you will need to provide confirmation of their link to the organisation)

Also, the vehicle to be scrapped has to be insured for business use, certified with valid road tax and MOT, and ULEZ non-compliant (this includes pre-Euro 6 diesel vehicles and pre-Euro 4 petrol vehicles).

The replacement vehicle must be:

  • A fully electric light van (up to and including 3.5 tonnes GVW) or a fully electric minibus (up to and including 5 tonnes GVW)
  • Purchased or on a hire/lease contract that is at least two years long
  • The same body type (van or minibus) as the vehicle that you scrapped.

The scheme is open to micro businesses (with up to 10 employees), sole traders and registered charities with a registered address within the 32 London boroughs or the City of London (Greater London Area).

For further details please check out TfL’s website about the scrapping scheme for vans and minibuses.

Iveco and Ford offer extra discounts if businesses choose their vans as replacements

Although the scheme was announced only on Monday (30th January), some van retailers have already come up with offers for those businesses that choose their vehicles as replacements in the scrappage scheme.

IVECO has announced it will support the TFL Scrappage Scheme with an exclusive offer available on the all-new IVECO eDAILY.

“In conjunction with the £7,500 scrappage grant available from TFL, when you scrap your old diesel vehicle you can also benefit from an additional £1,000 deposit contribution from IVECO to put towards your new eDAILY on Contract Hire or Hire Purchase,” Iveco’s website reads.

Ford is offering its wall box together with installation for free to those who choose the all-electric Ford Transit as a replacement vehicle. This offer is worth £873 excluding VAT.

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