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Mayor launches £23 million scrappage fund – with six weeks to go to new ultra low emission zone

With six weeks to go until the 24-hour, seven-days-a week Ultra Low Emission Zone begins in central London, the Mayor of London Sadiq Khan has opened his scrappage fund to help microbusinesses and charities scrap their older, more polluting vans and minibuses and switch to cleaner vehicles.

The £23 million scrappage fund is one of the Mayor’s hard-hitting measures to tackle toxic air pollution which leads to 40,000 premature deaths annually across the UK and increases the risk of asthma, cancer and dementia.

With polluting vehicles accounting for around 50 per cent of London’s toxic NOx air emissions, air pollutioncosts the UK economy £20 billion every year.

From today, microbusinesses and charities can choose from a range of ‘scrap for cash’ options and apply for the scheme online at

The Government already offer grants to cover the capital cost of electric vans. These grants reduce the cost of an electric van by up to 20 per cent or a maximum of £8,000. The Mayor’s scheme has been designed to be complementary to this support and aims to help microbusinesses – defined as those with 10 or fewer employees – and registered charities who have vans and minibuses that do not comply with the new ULEZ standards. Businesses and charities will have to be registered in London or have been frequently observed driving in the Congestion Charging Zone. 

Options include:

  • A payment of £6,000 to scrap a non-compliant van or minibus and help with running costs of a new electric vehicle
  • A payment of £3,500 to scrap a non-compliant van or minibus which can be used to:
    • purchase a newer ULEZ compliant Euro 6 vehicle;
    • access third party offers from rental and sharing services across London, including Zipcar, Northgate Hire, Enterprise and Europcar*;
    • support ongoing business operations*

The Mayor recently announced a further £25 million to support low-income Londoners scrapping older cars, with further details to be announced later this year. This brings the total funding the Mayor has made available for his scrappage fund to £48 million.

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