ULEZ: Vehicle scrappage grants for eligible charities increased

The ULEZ scrappage scheme provides financial assistance to help eligible Londoners scrap their non-compliant vehicles to prepare for the expansion of the Ultra Low Emission Zone (ULEZ). The Mayor of London, Sadiq Khan, announced an expansion of the eligibility criteria for the scrappage scheme and an increase in grant payments, which will help charities. The scheme comes into force across all London Boroughs from 29 August 2023.

The ULEZ van and minibus scrappage scheme is for eligible sole traders, micro businesses (up to ten employees), small businesses (under 50 employees) or charities with a registered address in London, that wish to scrap or retrofit a van or minibus that does not meet the ULEZ emissions standards. To be eligible, a charity needs to be registered with the Charity Commission.

From 21 August 2023, the scrappage payment for vans will increase from £5,000 to £7,000 and grants for scrapping minibuses will rise from £7,000 to £9,000. Charities operating in London can now apply to scrap or retrofit up to three vehicles (previously one), however, each vehicle will need a separate application. Charities may reapply even if they received a grant payment under the previous scheme.

To be eligible, your organisation must operate within the 32 boroughs of London or the City of London, and you can only apply for a grant payment to scrap or retrofit a vehicle that does not meet the ULEZ emissions standards. Charities and eligible businesses can apply for a short-term grace period, for example, where they have ordered a new van or minibus that is ULEZ compliant or where a retrofit to make a van or minibus compliant is booked but not yet completed. These grace periods are only open until 29 November 2023 for retrofits and 29 February 2024 for new, compliant vehicles.

Until 26 October 2025, many not-for-profit organisations that operate non-ULEZ-compliant minibuses used for community transport can register for a temporary exemption from the ULEZ charge. Examples of not-for-profit minibus services that will be able to benefit from this scheme are those used for educational, religious or social welfare reasons, as well as those used for other activities that benefit the community. Once an organisation has registered its vehicle and its eligibility has been confirmed, it will not have to pay the ULEZ charge until after the end date of the grace period on 26 October 2025. After this date, all minibuses will need to meet the ULEZ emissions standard or pay the daily ULEZ charge.

For further details about the new scrappage scheme and how to apply, visit this page.