Now every Londoner who has a car which is not ULEZ compliant, will be eligible for a £2,000 grant from 21 August.

It was confirmed by the high court that those who drive vehicles that do not meet the new environmental standards of ULEZ, would incur a daily charge of £12.50 from 29 August.

The new scrappage scheme will allocate £160 million in total, alongside the £60 million which was originally invested.

Small businesses and sole traders will also benefit from the new scheme, and will be able to receive up to £21,000 in grants to scrap up to three vans.

Small businesses and charities that have a single van that does not meet ULEZ standards, can receive payments of £7,000 for their demolition, an increase of £2,000.

While charities will be able to receive up to £27,000 in grants to scrap up to three minibuses, which are now not up to par environmentally. Overall the grants to scrap minibuses will also be raised by £2,000 to £9,000.

Scrappage grants for the disabled will be doubled to £10,000 for wheelchair-accessible vehicles.

Retrofitting non-compliant vehicles will also receive a boost, as the grants will increase by £1,000 to £6,000.

The push to alleviate the effects of air pollution, one of the Mayor’s main motivations for introducing ULEZ, will be boosted by higher grants to replace non-compliant vans with electric ones. They will be hiked up to £9,500 from £7,500.

While the grants to replace a non-compliant minibus with an electric minibus, is to rise from £9,500 to £11,500.

First come first serve

The new scrappage allocations will be provided on a first come, first serve basis. Low income and disabled Londoners have already had seven months to apply for the packages.

Initially, those on low incomes or with disabilities were prioritised for scrappage funds, it was then rolled-out to those who receive child benefits, before being expanded to all Londoners.

ULEZ expansion ‘a difficult decision’

Mayor of London, Sadiq Khan, reflected on the growth of scrap funds: “I have always said that expanding the ULEZ to the whole of London was a difficult decision, and not one I took lightly, but it’s a decision I remain committed to seeing through.

“I’m not prepared to step back, delay or water down vital green policies like ULEZ, which will not only save lives and protect children’s lungs by cleaning up our polluted air but help us to fight the climate crisis.”

“I have continued to listen to the concerns of Londoners over recent months, and today, I can announce a huge expansion to the scrappage scheme that means that all Londoners with non ULEZ-compliant cars will now be able to get financial support to switch to greener, less polluting vehicles.

While Christina Calderato, Transport for London’s director of strategy and policy, said:  “We know the significant positive impact that ULEZ has made already since its launch in 2019 in helping to tackle the air pollution that contributes to life-changing diseases, such as cancer, lung disease, dementia and asthma.

“We are now getting ready to expand the scheme London-wide on the 29 August, which will bring the benefits of ULEZ to a further 5 million Londoners living in outer London, where over half of the deaths attributable to air pollution occur.

“Nine out of ten cars seen driving in outer London on an average day are already compliant with ULEZ standards and will not have to pay the charge. The expansion of the scrappage scheme means that the remaining minority of Londoners who need to drive and don’t have a car that meets the standards now have access to financial support to make the green transition.”

Related: London-wide ULEZ expansion gets the green light