Car Scrappage Scheme 2023: A Comprehensive Guide

It’s a hugely hot topic of conversation for motorists right now, so if you’re a regular traveller to and from London, then you’ll be affected by the expansion of the Ultra Low Emission Zone (ULEZ).

Coming into force from Tuesday 29th August 2023, ULEZ will expand across Greater London, where the highest polluting vehicles will be charged a daily fee of £12.50 if they don’t meet the required Euro emissions standards. 

To support drivers, the Government has announced a car scrappage scheme as part of a larger £110 million programme. In this comprehensive guide, we explain what car scrappage schemes are available, what cars qualify for the scheme, which drivers are eligible, and if you can convert your car to make it ULEZ compliant. 

For more detailed information about the ULEZ scheme, take a look at our London ULEZ expansion article and read on to find out if you can benefit from the car scrappage scheme 2023…  

Key takeaways of the car scrappage scheme article

With so much information to digest, here’s a snapshot of what you need to know about the 2023 car scrappage scheme:

• Designed to provide London drivers with financial support to upgrade their vehicles
• Eligible applicants can receive up to £2,000 per car
• The scheme will benefit sole traders, micro businesses (with up to 10 employees) and registered London-based charities
• The sale of new diesel and petrol cars in the UK will be banned from 2030

Will there be a ULEZ scrappage scheme in 2023?

As announced by the Mayor of London, Sadiq Khan, a ULEZ-based scrappage scheme has been introduced from the 30th January 2023. The London ULEZ scrappage scheme will enable eligible applicants to scrap their vehicles in favour of an emission compliant alternative. Owners of cars, vans, minibuses, motorcycles and wheelchair accessible vehicles (WAVs) can take advantage of the grant based scheme:

• CAR owners can apply for a grant of up to £2,000 per vehicle
• VAN owners can apply for a grant of up to £9,500 per vehicle
• MINIBUS owners can also apply for a grant of up to £9,500 per vehicle
• MOTORCYCLE owners can apply for a grant of up to £1,000 per vehicle   
• WAV (wheelchair accessible vehicle) owners can apply for a grant of up to £5,000 per vehicle

What car scrappage schemes are available?

If you’re a resident or business owner living in one of the 33 London boroughs (including the City of London) and are eligible for the ULEZ car scrappage scheme, you can apply for one of the following grants:

1. Scrap your car to receive a grant payment of up to £2,000
2. Scrap your car to receive a grant payment of up to £1,600 plus one adult annual bus and tram pass
3. Scrap your car to receive a grant payment of up to £1,200 plus two adult annual bus and tram passes

Because the annual bus and tram passes have a higher value, the grant payment you receive when choosing this option is lower. Opting for the bus and tram passes provides you with 12 months of unlimited travel - the second can be gifted to someone else in your household. 

Who is eligible for the car scrappage scheme?

To be eligible for the 2023 ULEZ car scrappage scheme, you must be a London resident who receives at least one of the following benefits:

• Universal Credit
• Armed Forces Independence Payment
• Attendance Allowance
• Carer's Allowance
• Child Tax Credit
• Constant Attendance Allowance
• Disability Living Allowance
• Employment and Support Allowance
• Housing Benefit
• Income Support
• Industrial Injuries Disablement Benefit
• Jobseeker's Allowance
• Pension Credit
• Personal Independence Payment
• Severe Disablement Allowance
• War Pensioners' Mobility Supplement
• Working Tax Credit

What makes a car ULEZ compliant?

For a car to be compliant with ULEZ, it must meet the required Euro emissions standards, these are:

• EURO 4 for petrol cars (this became mandatory for all new cars in 2005)
• EURO 6 for diesel cars (this became mandatory for all new cars in September 2015)

As a general rule of thumb, most petrol fuelled cars under 18-years-old, or diesel powered cars under 8-years-old meet the current Euro emissions standards for ULEZ. All fully electric cars are automatically ULEZ-compliant and can enter the zone free of charge.

Can you convert a car to make it ULEZ compliant?

There are ways in which you can convert your car to make it compliant with ULEZ standards, but this is by no means straightforward. Converting a car is known as ‘retrofitting’ and involves upgrading the exhaust system and then changing the engine, so it can also be a costly exercise too!   

Does my car qualify for the scrappage scheme?

If your car doesn’t meet the Euro 4 standards for petrol cars or Euro 6 standards for diesel cars, then it’s likely your car will qualify for the ULEZ scrappage scheme. You can check the CO2 emissions rating for your car listed in your V5C registration certificate.    

How to apply for the car scrappage scheme

If you’re an eligible applicant, you will need to create a London road user charging (RUC) account and have all of your benefit documents ready to complete the application. The process works in four main stages:

1. Check your eligibility and apply online
2. Scrap your car
3. Receive a grant payment
4. Submit evidence of your scrapped car

Start your application via the Transport for London (TfL) website by entering your postcode to confirm that you live within Greater London.  

When does a car become tax exempt?

A car needs to be around 40-years-old (from the date of manufacture) to become exempt from tax and classed as a ‘classic vehicle’. This is of course a rolling exemption, which means that the tax exempt age and status changes on the 1st April each year.   

Is there a scrappage scheme for vans?

Of course it’s not just car drivers that will benefit from the ULEZ scrappage scheme, van owners can take advantage of the scheme too. Eligible Londoners can apply for one of the following grant payments and can choose to scrap or retrofit their vehicle:

• Scrap your van to receive a grant payment of up to £5,000
• Retrofit your van to receive a grant payment of up to £5,000
• Scrap your van and replace it with an electric van and receive a grant payment of up to £7,500

If you live within Greater London and wish to upgrade to a ULEZ compliant van, then explore the range of Euro 6 vans and fully electric vehicles that are in stock and ready to drive away from our sister site at Loads of Vans in Sutton London. 

Scrap your car and upgrade to a ULEZ compliant one

Here at Wilsons Epsom in Surrey, we offer a huge range of ULEZ compliant cars that will ensure you won’t have to pay the £12.50 daily charge to drive in London.

We also specialise in the sale of hybrid and fully electric cars and stock some of the best EVs on the market. Our multi-franchise dealership is located inside the M25 boundary and within easy reach of central London, so visit us for a test drive today. 

Get started by exploring over 1,000 new and used cars, each available to view in more detail via our online showroom.