Sadiq Khan reveals his £25m polluting vehicle scrappage scheme

Sadiq Khan reveals details of his £25m scrappage scheme for Londoners to replace dirty motors with ULEZ-compliant cars – but critics say it isn’t enough to help low-income families

  • Londoners who qualify will receive £2k for scrapping a car or £1 for a motorbike
  • Only those on low-income or disability benefits will qualify for the scheme
  • Eligible vehicles are only those not ULEZ compliant and have to have been owned by the person for a year
  • Critics argue it won’t help many Londoners with 2.3m living below poverty line
  • London think tank said £2k is not enough to help families buy pricey eligible cars 

It’s been eight months in the making but the London mayor has today finally revealed details of his £25million ‘polluting vehicle scrappage scheme’ that’s designed to help low-income families and those with disabilities replace their old motors with cleaner cars.

Sadiq Khan announced in February that he would set aside funds for hard-pushed families to buy greener vehicles that are compliant with the new Ultra Low Emission Standard (ULEZ).

The scheme allows qualifying vehicle owners living in London to claim £2,000 when they scrap a dirty car. 

It will help to remove a maximum of 12,500 polluting older cars from London’s streets, however, with an estimated 2.3 million people living below the poverty line in the capital, questions have been raised about whether the £2,000 sum is enough.

Is it enough? Low-income Londoners are being offered £2,000 to scrap their older cars and purchase ULEZ-compliant new models under a new scheme launched by Sadiq Khan

The ULEZ is currently in force in Central London in the same area as the Congestion Charge Zone.

But from October 2021 it will expand to the North and South Circular Road, covering the 32 London Boroughs and City of London.

Drivers of non-compliant older cars have – since April this year – been forced to pay £12.50 each day they enter the ULEZ in their  vehicles as part of mayor Khan’s increased efforts to reduce London’s poor air pollution statistics.

That means regular drivers will soon need to replace their older cars to avoid the daily penalty where they live.

Only electric or hybrid vehicles and the latest euro 6 standard diesels or a euro 5 or newer petrol are exempt from the charge.

In February, Khan acknowledged that it would be difficult for many low income families living in London to replace their older cars and vowed to launch a scrappage scheme to help them purchase a greener machine that is ULEZ compliant.  

It was confirmed on Wednesday morning that this incentive would amount to £2,000 for the scrappage of an old car and £1,000 for a non-ULEZ-compliant motorbike. 

The London mayor first announced the £25m vehicle scrappage scheme for the capital in February

The London mayor first announced the £25m vehicle scrappage scheme for the capital in February

However, there are restrictions on who can apply for the scheme. 

Only those on specific benefits will be eligible, including: 

  • Armed Forces Independence Payment
  • Industrial Injuries Disablement Benefit
  • Personal Independence Payment
  • Constant Attendance Allowance
  • Severe Disablement Allowance
  • Disability Living Allowance
  • War Pensions Mobility Supplement
  • Employment and Support Allowance

Rules also demand that the vehicle being scrapped is registered to the applicant or someone living at the same address – and must have been owned by them for more than 12 months prior to 23 October 2019. 

As well as the applicant having their tax, MOT and insurance all in order, the car or motorcycle in question must also fail to meet ULEZ standards.

The mayor said in a statement: ‘Here in London with our bold plans we have already cut pollution by a third in central London where we have implemented the world’s first Ultra Low Emission Zone and worked tirelessly to clean up the bus and taxi fleet.

‘Despite the lack of Government support, our car and motorcycle scrappage scheme will enable low-income and disabled Londoners to scrap their older, polluting vehicles and switch to cleaner versions.’

The ULEZ is due to be expanded across London from October 2021. Drivers will be charged £12.50 each time they use their non-compliant vehicles

The ULEZ is due to be expanded across London from October 2021. Drivers will be charged £12.50 each time they use their non-compliant vehicles

Think tank Centre for London welcomed the scheme but argued if £2,000 was substantial enough to help hard-pressed families afford compliant cars - most of which are expensive

Think tank Centre for London welcomed the scheme but argued if £2,000 was substantial enough to help hard-pressed families afford compliant cars – most of which are expensive

While the scheme could help up to 12,500 London families replace their older cars, this is just a fraction of the capital’s population believed to be living in poverty.

Figures released in 2017 by charity Trust for London estimated that 58 per cent of the 2.3 million Londoners below the poverty line are members of households in which someone is working to earn a living. 

And a London-dedicated think tank said the amount being offered won’t be enough to help most afford a ULEZ-eligible car. 

Silviya Barrett, research manager at Centre for London said: ‘The launch of the scheme is good news in principle, but whether a £2,000 grant is enough to cover the costs of buying a new, cleaner vehicle is questionable.’ 

To apply for the scheme, Londoners should visit: http://tfl.gov.uk/car-motorcycle-scrappage.

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