TfL scrappage scheme encourages small companies to go electric ahead of ULEZ expansion

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Transport for London (TfL) recently announced that the Mayor of London has launched a new £110 million scrappage scheme for road vehicles that don’t comply with 2023 Ultra Low Emission Zone (ULEZ) emissions standards. 

Available exclusively to small businesses and disadvantaged individuals, the TfL scheme is designed to help people whose current vehicles will not be exempt from ULEZ charges following the zone’s expansion across all London boroughs from 29 August 2023. The aim of the ULEZ expansion, TfL says, is ‘to help clear London’s air and improve public health’.

For vans in particular, a grant payment of £5,000-£9,500 is available to London-based sole traders and businesses with fewer than ten employees to scrap or retrofit an eligible vehicle. Londoners on certain low-income or disability benefits will also be able to take advantage of this scheme if their vehicles fail to meet new standards.

Manufacturer of commercial vehicles IVECO has added to this, agreeing to contribute a further £1,000 to those who switch to its eDaily vans.

IVECO UK Light Business Line Director Mike Cutts said: “Air quality is a critical environmental issue, and so encouraging operators to go electric by making the switch even more affordable makes sense. IVECO is proud to support this TfL scheme with an additional £1,000 contribution for eDAILY customers.”

The TfL scheme is also available for cars, with a grant of up to £2,000 available for scrappage. This may be attractive to low-income delivery drivers or small courier companies, where driving through London is essential and the cost of paying the daily £12.50 charge could easily add up.

James Watkins, Head of Policy and Public Impact at London Chamber of Commerce and Industry (LCCI), said: “We welcome the decision of the London Mayor, Sadiq Khan, to reform the ULEZ vehicle scrappage scheme. The announcement marks a step forward in the journey towards a safer, greener city and could enable businesses of all sizes to play their part in ensuring the ULEZ expansion is successful in its aim to improve air quality across the capital.

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