TfL report: Sole traders and business with 10 or fewer employees registered in London can apply to scrap a van (£5,000 grant) or a minibus (£7,000 grant), retrofit certain vans or minibuses (£5,000 grant) or scrap and replace a van or minibus with a fully electric vehicle (£7,500 or £9,500 grant respectively).

Mayor Sadiq Khan this week launched his biggest scrappage scheme ever. The £110 million fund will support Londoners on lower incomes, disabled Londoners, London-based charities, sole traders and business with 10 or fewer employees prepare for the expansion of Ultra Low Emission Zone (ULEZ) London-wide on 29 August this year by replacing or retrofitting their old, polluting vehicles.

To accompany the scrappage scheme, the Mayor and TfL are also announcing a range of ULEZ support offers from businesses for all Londoners, including additional exclusive offers for successful applicants of the scrappage scheme. This will enable Londoners to benefit from discounts and promotions on subscriptions, rentals and purchases of bicycles, e-bikes, cargo bikes, cars and vans.

It follows the Mayor’s decision to expand London’s Ultra Low Emission Zone (ULEZ) London-wide in August, which will mean five million more Londoners will be able to breathe cleaner air. Already around 85 per cent of vehicles seen driving in outer London meet the standards, meaning the majority of drivers will not need to pay. The new scrappage scheme and grace periods will help drivers of the remaining non-compliant vehicles prepare.

While few logistics industry vehicles will be affected by ULEZ, some industry employees driving their own cars to work at depots within the new London-wide zone, for instance at unsociable hours on shift, will be affected by expansion. Those who are disabled or, for example, working part time and in receipt of work credits, may be eligible under the scrappage scheme. London residents receiving certain means-tested benefits and non-means-tested disability benefits can apply for cash grants of up to £2,000 to scrap their non-compliant cars or motorcycles. As a new feature, successful applicants can also choose to receive a higher value package comprised of up to two free annual bus and tram passes and a lower cash grant.