Sadiq Khan has announced that he will be increasing the compensation for people forced to scrap their non-compliant vehicles as a result of the expanding Ultra-Low Emissions Zone (ULEZ) – also known as the “Scrappage Scheme”.

Khan has said that grants of up to £2,000 would be available to every Londoner with a non-compliant car or motorcycle.

Previously ineligible drivers will be able to apply from 21 August.

The mayor said businesses would be able to claim £7,000 for every scrapped van while charities would be given payments of £9,000 for minibuses.

The move will be paid for from City Hall’s reserves and will increase the total cost of the scrappage fund to £160 million.

The scheme is due to take effect from August 29. From then, any vehicle not meeting Ulez emissions standards must pay a £12.50 daily charge to drive anywhere in London.

For cars, motorcycles and wheelchair accessible cars or vans there are eight grant payment options:

  • Scrap a car - £2,000
  • Scrap a car - £1,600 plus one adult-rate Annual Bus & Tram Pass
  • Scrap a car - £1,200 plus two adult-rate Annual Bus & Tram Passes
  • Scrap a motorcycle - £1,000
  • Scrap a motorcycle - £600 plus one adult-rate Annual Bus & Tram Pass
  • Scrap a motorcycle - £200 plus two adult-rate Annual Bus & Tram Passes
  • Scrap a wheelchair accessible vehicle (car or van) - £5,000
  • Retrofit a wheelchair accessible vehicle (van only) - £5,000

For more information on the scrappage scheme, please visit: https://tfl.gov.uk/modes/driving/ultra-low-emission-zone/scrappage-schemes/car-and-motorcycle