Transport for London (TfL) has today [16 August 2024] called for any remaining Londoners who wish to use the ULEZ scrappage scheme to submit their applications by 11:59pm on 7 September ahead of its planned closure.
TfL has said that ‘any application made before the proposed deadline is guaranteed to be processed’.
Launched in January 2023 and extended in June 2023, the ULEZ scrappage scheme offers owners of road vehicles that don’t comply with Ultra Low Emission Zone (ULEZ) emissions standards a grant payment towards a ULEZ-compliant vehicle if they scrap their non-compliant vehicle.
Those who adopt a ULEZ-compliant vehicle would then be exempt from the £12.50 daily charge to drive in London. The ULEZ first came into effect in April 2019 and, in August 2023, was expanded to London’s outer boroughs.
Individuals taking advantage of the ULEZ scrappage scheme could receive up to £2,000 for car scrappage, while businesses could receive up to £9,500 towards the cost of purchasing a less pollutive van or retrofitting an existing van to meet emissions standards.
Since the scrappage scheme opened, 53,944 applications have been approved, with over £186 million in grants having been awarded. Of these applications, 17,936 were to scrap or retrofit a van or minibus, totalling over £116m in grants.
Small businesses represented 17,704 of the approved applications, receiving a total of almost £115m. 330 vehicles were also donated to Ukraine as part of the scheme.
Mayor of London Sadiq Khan commented: “I am proud that the scrappage scheme – the biggest in the UK – has supported so many Londoners to switch to cleaner, greener vehicles. ULEZ compliance has now reached more than 96%, bringing cleaner air to millions of Londoners.”
He added: “I’m also pleased that after the huge success of the Ukraine scheme, I’m planning to provide additional funding so that vehicles can continue to be donated to the country once the scrappage scheme closes. I remain committed to taking world-leading action to improve London’s air quality and encourage sustainable transport.”
Christina Calderato, director of strategy at TfL, noted: “The expanded ULEZ has meant that more than 5 million people are now breathing cleaner air and from the Six Month Report we have seen its success in driving down air pollutant emissions and concentrations. Harmful roadside nitrogen dioxide in outer London has fallen by over 20% through the different phases of the scheme. The £186 million we have committed so far through the scrappage scheme has been instrumental in the over 96% of vehicles we are now seeing complying with the standards.”
According to the Greater London Authority’s “London-wide ULEZ Six Month Report”, it’s estimated that nitrogen oxides (NOX) emissions from cars and vans in outer London are 13% and 7% lower, respectively, as a result of the ULEZ expansion. PM2.5 exhaust emissions from cars and vans in outer London are also estimated to be 20% lower than they would have been without the ULEZ expansion.
Based on data in this report, Logistics Manager’s sister publication CiTTi Magazine estimated that the potential total revenue raised from ULEZ penalty charges since the expansion could be between £153m and £306m, depending on how many were paid within the reduced period.
Calderato continued: “We have seen enthusiastic take-up of the scrappage scheme after it was opened to all Londoners. With the vast majority of those needing support to adapt to the ULEZ having already taken action and nearly 54,000 applications approved, demand for the scheme is now much lower. We encourage anyone who still needs support to submit their application before 8 September. Any remaining funds will then be considered for other proposed uses to further the mayor’s transport strategy.”
In response to the news of the closure of the ULEZ scrappage scheme, Oliver Lord, head of strategy and UK at Clean Cities, said: “The ULEZ scrappage scheme has been a lifeline for many, and TfL’s announcement to close it is a significant moment. This now leaves a pot of money that can be strategically targeted where we need it most: driving our net zero goals.
“Supporting small businesses to transition to electric vans and pedal power is the next crucial step. However, removing the electric van grant at this time, especially coupled with the upcoming removal of the congestion charge exemption next year, is not sending the right signal.
“Van emissions in the UK are substantial and continue to rise. At the very least, the mayor should keep the electric van grant alive and explore other innovative ways to use it, such as social leasing schemes. This approach would put London back on the front foot, establishing the capital as leaders in sustainability business practices and zero-emission mobility.”
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In June 2024, BBC News reported that only around 2% of vans scrapped as part of the scheme were replaced by electric equivalents.
