ULEZ Scrappage Scheme London 2026: Status Update and Alternatives

The London ULEZ scrappage scheme, the £210 million Mayor of London grant programme designed to help residents, charities, sole traders and small businesses replace non-compliant vehicles, closed to new applications on 8 September 2024. Transport for London continues to process residual claims from previously approved applicants while the Greater London Authority directs replacement support through the Mayor's Air Quality Fund and other indirect routes. This guide covers the scheme's final position, what successful applicants received, the closed grant categories, and the realistic alternatives available to a London driver in a non-compliant vehicle in 2026.

Why the ULEZ scrappage scheme closed in September 2024

The Mayor of London announced the closure of the ULEZ scrappage scheme to new applications on 8 September 2024, citing that the £210 million fund was nearing full allocation. By that point the scheme had supported over 54,000 vehicles to be scrapped or retrofitted, according to TfL programme reporting. The closure followed a series of expansions: the original 2023 scheme initially covered low-income residents, was widened to all London residents, and then to sole traders and small businesses across all 32 boroughs.

TfL continued to process applications submitted before the closure date through 2025 and into early 2026, completing payments as scrappage and replacement vehicle conditions were verified. Drivers who applied before 8 September 2024 should still receive their grant if they meet the conditions, but no new applications are accepted in 2026.

What successful applicants received under the scheme

Grant amounts varied by vehicle type, in line with the published TfL scrappage payment schedule. Cars attracted £2,000 per scrapped vehicle. Motorbikes received £1,000. Light vans received up to £7,000, depending on whether the applicant chose to scrap and replace with a new electric van or to retrofit. Minibuses received up to £9,000. Wheelchair-accessible vehicles attracted the highest grant at up to £11,500, recognising the higher replacement cost of accessible vehicles for disabled passengers.

Applicants had to scrap or retrofit the qualifying non-compliant vehicle and provide a Certificate of Destruction from an Authorised Treatment Facility, or proof of an accredited retrofit, to claim payment. Replacement vehicles were not required to be new, but had to meet ULEZ compliance standards (Euro 6 diesel or Euro 4 petrol or zero emission). Hybrid vehicles meeting petrol Euro 4 also qualified.

Alternatives in 2026: charity, dealer offers and finance

With the TfL scheme closed, drivers in 2026 face three main alternatives. First, charity car donation: services like Giveacar.co.uk offer free collection of older non-compliant vehicles, sell or scrap them, and donate the residual value to a charity nominated by the donor. The donor receives a small acknowledgement and can claim tax relief if a registered charity is nominated. Second, dealer scrappage allowances: most major manufacturers run scrappage offers from time to time, providing a discount on a new compliant vehicle in exchange for the old one.

Third, used compliant vehicle finance: a Euro 6 diesel or Euro 4 petrol used car can typically be financed through PCP, HP or PCH from £150 to £300 a month for an entry-level model, depending on credit score. Drivers should compare the monthly finance cost against the £12.50 daily charge they currently absorb, since the break-even point on a finance switch is often as low as 24 to 30 days of zone entry per month.

The Mayor's Air Quality Fund and indirect support

The Mayor's Air Quality Fund (MAQF), administered by the Greater London Authority, runs grant cycles for community air quality projects through to 2028, according to london.gov.uk. While MAQF does not provide direct vehicle grants to private individuals, it supports London boroughs, charities and community groups in projects that benefit residents indirectly, such as electric vehicle car clubs, cargo bike schemes, and community transport. Drivers in some boroughs may benefit from these projects without applying as individuals.

A separate route is the Plug-in Van Grant from the Office for Zero Emission Vehicles, which contributes up to £2,500 toward eligible electric vans for businesses and sole traders. Combined with manufacturer offers and tax breaks for electric vehicles, this can substantially reduce the cost of switching from a non-compliant van to a compliant alternative, even without a TfL scrappage payment.

Decision framework: scrap, replace, or pay daily

Without scrappage funding, the decision narrows to whether to absorb the £12.50 daily charge or replace the vehicle. A simple test: if the driver enters the zone on more than 60 days a year, the £750 in annual charges typically exceeds the depreciation cost of switching to a used Euro 6 diesel. For zone entries of 200 days a year or more (the typical work commute), the £2,500 annual charge cost makes vehicle replacement the rational choice in almost every case.

For drivers entering the zone fewer than 30 days a year, paying the daily charge often remains cheaper than the depreciation and finance cost of replacement. Each driver's calculation depends on the specific vehicle, finance position and usage pattern, but the broad shape of the decision is usually clear from total annual zone entries.

What scrappage scheme applicants should do in 2026

Drivers who applied to the ULEZ scrappage scheme before 8 September 2024 but have not yet received payment should track their application through the TfL portal at tfl.gov.uk/modes/driving/ultra-low-emission-zone-scrappage-schemes. The portal logs the application status, any documentation requests, and confirmed payment dates. TfL has a stated target of completing payment within a defined window of receipt of the Certificate of Destruction, but processing has reportedly stretched in some cases due to volume.

If contact has lapsed, applicants should email scrappage@tfl.gov.uk with the application reference number and supporting documents. Citizens Advice and London-borough advice services have helped applicants resolve stalled cases. Drivers who scrapped a vehicle without proper documentation may struggle to claim, since the Certificate of Destruction from an Authorised Treatment Facility is the central proof TfL requires.

Comparing London with other UK CAZ scrappage schemes

Birmingham, Bristol and Glasgow each ran smaller, locally-funded support schemes for residents and businesses affected by their respective zones. The Birmingham scheme, administered through brumbreathes.co.uk, focused on financial loans and small grants for sole traders and is now largely closed to new applicants. Bristol's scheme, through cleanairforbristol.org, included grants for residents and small businesses but was scaled differently from London's £210 million programme. Glasgow's LEZ did not include a direct vehicle replacement grant programme on London's scale.

Frequently asked questions

Will the ULEZ scrappage scheme reopen in 2026?

There is no Mayor of London or TfL announcement of a reopening as of early 2026. The scheme's £210 million budget was fully allocated by September 2024, and the political focus has shifted to indirect support such as the Mayor's Air Quality Fund.

Can I still claim if I applied before 8 September 2024?

Yes, if the application was approved before the closure date. TfL continues to process residual claims through 2025 and 2026, with payment made once the Certificate of Destruction or retrofit evidence is verified.

What is the highest grant the scheme offered?

The highest grant was up to £11,500, paid for scrapping a non-compliant wheelchair-accessible vehicle and replacing it with a compliant alternative. Light vans and minibuses received up to £7,000 and £9,000 respectively.

Are there equivalent schemes outside London?

Birmingham, Bristol, Sheffield, Bradford, Portsmouth and Tyneside have run smaller financial assistance schemes for affected residents and businesses, with eligibility tied to the local zone. Most have closed or are tightly scoped. Drivers should check the relevant city council CAZ page for current status.

What does charity car donation involve?

A service such as Giveacar.co.uk arranges free collection of an older vehicle, sells or scraps it through accredited partners, and donates the proceeds to a charity nominated by the donor. The donor disposes of the non-compliant vehicle without scrapyard hassle.

Does the Plug-in Van Grant still apply in 2026?

Yes. The Office for Zero Emission Vehicles continues the Plug-in Van Grant for eligible electric vans in 2026, with up to £2,500 contributed to the cost of qualifying small vans. Eligibility, claim caps and qualifying models are listed on gov.uk.

Can I retrofit instead of scrapping?

Retrofit is technically possible for some larger vehicle classes through Clean Vehicle Retrofit Accreditation Scheme certified options, but availability for cars is limited and the economics rarely work compared with vehicle replacement. The closed TfL scheme accepted accredited retrofits.

Sources

• Transport for London, ULEZ scrappage scheme final position, tfl.gov.uk/modes/driving/ultra-low-emission-zone-scrappage-schemes (accessed 2026)
• Greater London Authority, Mayor of London announcements on scheme closure, london.gov.uk (2024)
• Mayor's Air Quality Fund, london.gov.uk/what-we-do/environment/pollution-and-air-quality/mayors-air-quality-fund-maqf (2026)
• Office for Zero Emission Vehicles, Plug-in Van Grant, gov.uk/plug-in-vehicle-grants (2026)
• Giveacar charity car donation, giveacar.co.uk (2026)
• Clean Vehicle Retrofit Accreditation Scheme, energy-saving-trust.cvras (2026)

Internal links: London ULEZ charge payment guide 2026 · London ULEZ disabled and Blue Badge exemption 2026 · Clean Air Zones UK overview