In a recent announcement, Sadiq Khan, Mayor of London, has confirmed an additional injection of £50m into the vehicle scrappage scheme, marking a significant enhancement in the city’s fight against pollution. Both small businesses and sole traders will benefit from an expanded allowance that permits the scrappage of up to three vehicles instead of the previous limit of just one.
Moreover, in a move set to benefit the wider public, all London residents possessing non-compliant cars or motorcycles will now be eligible to apply for the scheme starting from 21st August.
Under the new scheme, Londoners will observe a considerable increase in the scrappage allowances. Vans, which previously received a £5k allowance, will now receive £7k. There’s a substantial rise for Wheelchair Accessible Vehicles (WAVs) as well, with the scrappage allowance escalating from £5k to £10k.
Minibus owners can expect their scrappage allowance to climb from £7k to £9k. For those interested in making the shift to greener transport options, the financial incentive to replace their current vehicle with an electric van or minibus has also increased. The allowance for an electric van replacement jumps from £7.5k to £9.5k, while the electric minibus replacement grant increases from £9.5k to £11.5k.
Further, a £6k allowance is now available for those who choose to retrofit their vehicle, up from the previous £5k.
Although the allowance for cars remains at £2,000, car owners could potentially receive up to £3,000 if they combine the scrappage funding with bus and tram passes.
This enhanced scheme is a strong step towards encouraging more sustainable and eco-friendly modes of transport. By providing financial incentives to switch to cleaner vehicles, London continues to reinforce its commitment to reduce vehicle emissions and improve air quality in the city.