On the 18 December, the Mayor of London announced a bold new van scrappage scheme. This £23 million scheme will prepare micro-businesses and charities for the Ultra Low Emission Zone (ULEZ) by helping them to switch to the cleaner vehicles, including electric vans or cargo bikes. Under the scrappage scheme, eligible micro businesses and charities can apply for funds to scrap up to three older, more polluting vans and charity minibuses and switch to cleaner vehicles.
There are three payment options for the scheme:
Option 1: Scrappage for frequent users of the Congestion Charging Zone (CCZ) (£3,500)
The vehicle being scrapped must:
- Have been driven within the CCZ at least 52 times during the 6 months before 22 February 2019 - this will be checked against existing transactions in your London Road User Charging account
- Be a pre-Euro 6 model light van (or charity-owned minibus) that does not meet the ULEZ standards
Option 2: Scrappage and purchase/lease of Euro 6 replacement (£3,500)
The vehicle being scrapped must be:
- A pre-Euro 6 model light van (or charity-owned minibus) that does not meet the ULEZ standards
- Replaced (by purchase or lease) with a Euro 6 light van or Euro 6 minibus (for charities only)
The micro-business or charity must be registered at a Greater London address.
Option 3: Scrappage and contribution towards running costs (including insurance) of an electric vehicle (£6,000)
The grant payment is made up of £3,500 for scrapping eligible vehicles plus a £2,500 contribution towards running costs (including insurance) of a replacement electric vehicle(s).
The vehicle being scrapped must be:
- A pre-Euro 6 model light van (or charity-owned minibus) that does not meet the ULEZ standards
- Replaced (by purchase or lease) with an electric light van or electric minibus (for charities only)
For a micro business or charity NOT registered in Greater London the vehicle must also:
- Have been driven within the CCZ at least 52 times during the 6 months before 22 February 2018 - this will be checked against existing transactions in your London Road User Charging account
Under Option 3 you can apply for a refund from ULEZ charges for the three months after you first apply for the scheme.
Organisation and vehicle eligibility:
For Option 2 and Option 3, organisations must be able to prove that they're registered at an address in a London borough or the City of London. Proof includes documents from Companies House, the Charity Commission or HMRC.
Micro businesses must have:
- 10 or fewer employees
- Up to £632k turnover OR up to £316k balance sheet total in the preceding and current financial year AND
- Companies House registration as an active company in the UK OR be VAT registered in the UK
Charities must be an:
- Entity registered with the Charity Commission as an active charity
Vehicle(s) you intend to scrap must be:
- A van or minibus owned by a registered micro business or charity for more than 12 calendar months before 22 February 2019
- Insured for business use
- Road taxed with a valid MOT
- Scrapped at an approved Authorised Treatment Facility (ATF)
It must also fail to meet ULEZ emissions standards.
Businesses can use the scrappage scheme to support replacing vehicles with cargo bikes or vehicle sharing sercies. Find more information on how to apply, terms and conditions and guidance materials here.
The Mayor of London emphasises the need to start facilitating change and said: 'To truly get a grip on our lethal air we need to take bold action to rid our city of the most polluting vehicles.' which is why this kind of scheme is so important. The van scrappage scheme is the Mayor's next step in tackling pollution.
