ULEZ Scrappage Scheme Explained (2025) | Complete Guide
Are you wondering what the ULEZ Scrappage Scheme is and if you could’ve claimed money for your old car? The short answer is yes if you qualify. You could have received up to £10,000 for scrapping or donating a non-compliant vehicle.
But not everyone was eligible. Daily ULEZ charges still apply, and failing to comply could cost you hundreds each month.
In this guide, we’ll break down everything you need to know, who qualified, how it worked, and what other options are still available.
So, without any delay, let’s get into it.
What is the ULEZ Scrappage Scheme?
The ULEZ Scrappage Scheme helps Londoners replace older, polluting vehicles. It offers a grant if you scrap your car or van, but it should be non-compliant. The goal is to reduce harmful emissions in the city. You get money to switch to a cleaner vehicle or other travel options.
It’s run by Transport for London (TfL). The scheme supports the Ultra Low Emission Zone expansion. If your vehicle doesn’t meet the rules, you could face daily charges. This scheme gives you a way to avoid them.
You don’t need to guess if you’re eligible. You can simply check your vehicle using an online ULEZ checker tool. If it qualifies, you can apply for the grant directly online.
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Who Is Eligible for the ULEZ Scrappage Scheme?
To qualify, you must live in one of London’s 32 boroughs or the City of London. You also need to receive certain benefits, like Universal Credit or Child Tax Credit. If you run a small business or charity, you may qualify, too. However, you must meet the specific TfL criteria.
First, your vehicle must not meet ULEZ-compliant emission standards. Second, it must be registered in your name or your organisation’s. Third, it must be insured, taxed, and have a valid MOT. Otherwise, your application could be rejected.
In addition, there are limits on how many vehicles you can scrap. For example, sole traders can apply for one vehicle. Meanwhile, small businesses and charities can apply for up to three.
Which Vehicles Qualify for the ULEZ Scrappage Scheme?
Only certain vehicles are eligible for the scheme. To qualify, your car, van, or motorbike must fail to meet ULEZ emissions standards. Petrol vehicles must be Euro 4 or older. Diesel vehicles must be Euro 5 or older.
TfL checks each vehicle’s registration and emissions. So, it must be UK-registered and owned by you or your organisation. It must also be taxed, insured, and have a valid MOT. Without this, you can’t apply.
Additionally, vehicles must not be used as taxis or rented for short-term hire. TfL has separate rules for wheelchair-accessible vehicles and minibuses. So, make sure to check the full list before applying.
How Much Can You Get Through the Scrappage Scheme?
The amount depends on your vehicle and situation. For a car, you can get up to £2,000. For motorcycles, the grant is up to £1,000. Vans and minibuses can qualify for more.
Small businesses and charities can get up to £7,000 per van. For wheelchair-accessible vehicles, the grant may be even higher. You can also choose a mix of cash and travel credit. This can include an annual bus and tram pass instead of the full cash amount.
Here is the list of grants:
| Vehicle Type / Applicant | Scrap Grant | Retrofit Grant | Other Options |
| Car (Private Owner) | £2,000 | N/A | Travelcard alternative available |
| Motorcycle / Moped (Private Owner) | £1,000 | N/A | N/A |
| Wheelchair-Accessible Vehicle (WAV) | £10,000 | £6,000 | May combine with travel support |
| Small Business / Sole Trader – Van | £7,000 | £6,000 | Combine with EV switch |
| Charity – Minibus | £9,500 | £6,000 | EV upgrade option available |
| Travel Credit Option | Varies | N/A | Adult bus/tram pass offered with lower grant |
How to Apply for the ULEZ Scrappage Scheme?
First, check if your vehicle is eligible using TfL’s online tool. This quick step confirms whether you can apply. Next, gather all the necessary documents, such as proof of ownership, ID, and vehicle registration.
Then, visit the official Transport for London website. Look for the scrappage scheme application section. Read the instructions carefully to avoid mistakes.
After that, complete the online application form with accurate details about you and your vehicle. Upload clear copies of your supporting documents. Common file types like JPG, PNG, or PDF are accepted.
Finally, submit your application and wait for TfL to review it. You’ll get a notification by email or through your TfL account. If approved, TfL will send you instructions on how to proceed.
Are there Other Options like Retrofitting, Vehicle Donation, and Exemptions?
Scrapping your vehicle isn’t your only choice. There are other ways to meet ULEZ rules or help others.
Retrofitting Your Vehicle
Retrofitting means upgrading parts like exhausts to meet ULEZ standards. This is common for vans, minibuses, and wheelchair-accessible vehicles. TfL offers grants, up to £6,000 for some vehicles, to help cover costs. Only approved retrofit kits count, and you’ll need certification once the work is complete. After that, your vehicle is ULEZ-compliant and free from daily charges.
Vehicle Donation
You can donate your vehicle instead of scrapping it. This option supports international aid, including humanitarian work in Ukraine. The grant amount matches scrappage payments. The process is similar, using TfL-approved donation services.
Exemptions and Grace Periods
Some vehicles and drivers get exemptions or temporary grace periods. Disabled drivers, Blue Badge holders, and historic vehicles (over 40 years old) often qualify. Specialist vehicles, military, and some NHS transport also get exemptions. Rules can change, so check TfL’s website for the latest details.
Frequently Asked Questions
Can people outside London apply for the ULEZ Scrappage Scheme?
No, the ULEZ scrappage scheme is only available to London residents. Also, for those businesses and charities within the 32 London boroughs and the City of London. This is because the scheme aims to reduce pollution specifically within the Ultra Low Emission Zone. If you live outside London, you won’t be eligible to apply.
What are the benefits of using the scrappage scheme?
The main benefit is financial help to replace a polluting vehicle with a cleaner one or alternative transport options. This saves you from paying daily ULEZ charges, which can add up quickly. You’re also helping improve London’s air quality. Additionally, the scheme offers flexibility through grants for retrofitting or travel credits.
What happens if I’m rejected or change my mind after approval?
If your application is rejected, TfL will inform you of the reasons and advise on what to do next. You cannot reapply with the same vehicle if it doesn’t meet the criteria. If you change your mind after approval but before scrapping or donating, you must notify TfL immediately. The grant cannot be paid if you don’t follow the scheme’s rules.
Can I keep the vehicle after receiving the grant?
No, you must scrap or donate the vehicle after receiving the grant. Keeping it means you’ll face ULEZ charges, and TfL may take action to recover the grant. The scheme is designed to remove older, polluting vehicles from London’s roads permanently.
Is the scheme still open in 2025?
No, the official ULEZ scrappage scheme had a deadline on 8 September 2024. All eligible payments were processed by July 2025. While the ULEZ rules still apply, you can no longer apply for scrappage grants in 2025. Check TfL’s website for current support options and updates.
Final Thoughts: ULEZ Scrappage Scheme
Scrapping your car through the ULEZ scheme was a smart move. But even now, there are still options to stay compliant and avoid daily charges.
Don’t ignore the rules. Check your vehicle, explore exemptions, or retrofit if needed. And always go through official TfL channels to stay protected.
For more advice on ULEZ, vehicle rules, and smart car choices, explore the rest of our blog.
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