Your Guide to the Car Scrappage Scheme

As a dealership proud to be so well placed here in West London, we keep a close eye on transport news around the capital, which includes the latest ULEZ initiative updates. Short for Ultra Low Emission Zone, this scheme was brought in to reduce pollution in London, and the area covered is expanding on 23rd August 2023 to encompass Greater London too. To make this transition easier for those who live, work and/or travel regularly within the Greater London area, the Government have implemented a scrappage scheme; something we’ve investigated on your behalf. The need-to-knows about the 2023 car scrappage scheme are as follows…

What is ULEZ? 

Let’s find out a little more about the reason behind the car scrappage scheme. Currently, the Ultra Low Emission Zone covers Central London, within the North and South circular roads, but this is due to expand to cover Greater London in August this year. The zone is in operation 24 hours a day, 7 days a week, 364 days a year, with Christmas Day being the only time it doesn’t apply. 

For cars, motorcycles, vans and specialist vehicles up to and including 3.5 tonnes that don’t meet the below standards, a £12.50 per day charge applies.

In order to be ULEZ-compliant and therefore not liable for the £12.50 per day charge, vehicles must meet the following standards: 

• Euro 3 for motorcycles (including mopeds, motorised tricycles and quadricycles)
• Euro 4 for petrol cars, vans, minibuses and other specialist vehicles
• Euro 6 for diesel cars, vans and minibuses and other specialist vehicles

It’s important to note that the ULEZ charge doesn’t replace the long-running congestion charge; it’s in addition to it. All vehicles travelling within the congestion charge zone need to pay £15 per day, plus the ULEZ charge of £12.50 if their vehicle doesn’t comply with the standards above. It could prove fairly pricey if your vehicle is older and unkind to the environment. 

What is the car scrappage scheme? 

Announced by the Mayor of London Sadiq Khan, the scrappage scheme came into effect on 30th January, incentivising eligible drivers to scrap their non-ULEZ compliant in favour of greener (and therefore compliant) vehicles in a grant-based scheme. 

For example, eligible car drivers can receive up to £2000, which, in this cost of living crisis is not to be sniffed at. 

Am I eligible for the car scrappage scheme? 

Firstly, you need to be a resident of one of the 33 London boroughs, which includes the City of London. You also need to be receipt of one of the following benefits: 

• Universal Credit
• Armed Forces Independence Payment
• Attendance Allowance
• Carer's Allowance
• Child Tax Credit
• Constant Attendance Allowance
• Disability Living Allowance
• Employment and Support Allowance
• Housing Benefit
• Income Support
• Industrial Injuries Disablement Benefit
• Jobseeker's Allowance
• Pension Credit
• Personal Independence Payment
• Severe Disablement Allowance
• War Pensioners' Mobility Supplement
• Working Tax Credit

What grants are available under the car scrappage scheme? 

If eligible, owners of cars, vans, minibuses, motorcycles and wheelchair-accessible vehicles (WAVs) can apply for the appropriate grant. These are as follows: 

• Car owners can apply for a grant of up to £2,000 per vehicle
• Van owners can apply for a grant of up to £9,500 per vehicle
• Minibus owners can also apply for a grant of up to £9,500 per vehicle
• Motorcycle owners can apply for a grant of up to £1,000 per vehicle   
• WAV (wheelchair-accessible vehicle) owners can apply for a grant of up to £5,000 per vehicle

The form that the car scrappage grants can take can vary, as they don’t just incentivise the purchase of a ULEZ-compliant car, they make bus and tram travel easier too. Eligible car owners can apply for one of the following grant types: 

1. Scrap your car to receive a grant payment of up to £2,000
2. Scrap your car to receive a grant payment of up to £1,600 plus one adult annual bus and tram pass
3. Scrap your car to receive a grant payment of up to £1,200 plus two adult annual bus and tram passes

What is a ULEZ-compliant car? 

A ULEZ-compliant car isn’t as rare as you might think; in fact, most petrol-powered cars under 18 years old are ULEZ-compliant, as are diesel-powered cars under 8-years-old. Double-check that your petrol car is Euro 4 or your diesel car is Euro 6, as if not, you may need to pay the ULEZ charge and be eligible for a 2023 car scrappage grant. 

How do I apply for the car scrappage scheme? 

In order to benefit from the car scrappage scheme grant, you must first create a London road user charging (RUC) account, and complete your application using your appropriate benefit documents. You’ll first go through an eligibility check, and then you’ll need to scrap your car once your eligibility has been confirmed. Once you’ve provided proof that your car has been scrapped and this has been verified, your grant will be…well, granted! 

Start your application via the Transport for London (TfL) website.

Find a ULEZ-compliant car at West Motors 

At West Motors, most of the cars that we have in stock meet the required emission standards, but you can view the full selection here to make sure the model you’re after won’t cost you on your travels.

As well as finding your next ULEZ-compliant car at West Motors, you’ll also be assured of a fuss-free buying experience, with flexible finance deals, part exchange, warranty options and a fantastic level of customer service