Skip advert
Advertisement
Tips and advice

The 2020 diesel van scrappage scheme explained

Read how van drivers could claim up to £9,500 towards a new van and avoid London's ULEZ charges under TFL’s scrappage scheme

London van drivers could be eligible for up to £9,500 towards a new van as part of TFL’s £23m scrappage fund, set up to rid the capital of the most polluting vehicles.

The local authority cash can be used to buy a clean, modern new or used van that will be exempt from the Ultra Low Emission Zone charge. The charge came into force in 2019 and results in an additional £12.50 on top of the daily congestion charge if a vehicle isn’t compliant.

Advertisement - Article continues below

London Ultra Low Emission Zone explained

Most petrol vans are exempt from the ULEZ but diesel vans must be Euro 6-compliant to avoid the charge. The Euro 6 standard became mandatory for all new vans sold since September 2016. The cost for small business owners who don't scrap more polluting vans are set to be enormous. Anyone driving into the zone every day with an older diesel van will face a bill of £250 each month.

From early 2020, the terms of eligibility for the TFL grant changed, allowing small businesses with up to 50 employees (an increase from up to 10 employees) to take part, for up to three vans per company.

Across all the three van scrappage options, the van or minibus must have been owned for more than 12 months before the start of the scrappage scheme, which began on 22 February 2019.

How the scheme works

There are three options available under the 2020 TFL rules.

Option 1: £7,000 grant to scrap a pre-Euro 6 van

This is aimed at businesses that regularly drive in central London, no matter where they’re based. This grant is available for scrapping any old van that has been clocked entering the Congestion Zone at least twice a week in the six months prior to the start of the scrappage scheme. There's no obligation to replace the vehicle.

Option 2: £7,000 off a Euro 6 van

Businesses based in Greater London can apply for the same £7,000 grant for scrapping any pre-Euro 6 van they have owned for at least a year, no matter how many times it has been driven in the ULEZ zone. The van must be replaced with a Euro 6-compliant model for the money to be paid.

Option 3: £9,500 off an electric van

The largest grants are reserved for zero-emissions electric vans and are available to any business meeting the criteria for option 1 or 2. The grant payment is made up of£7,000 for scrapping eligible vehicles, plus a £2,500 contribution towards running costs (including insurance) of a replacement electric vehicle.

Companies must pay for their new van up front and for any scrappage costs before receiving the money from the Mayor of London's Office. The application process involves getting approval before disposing of each vehicle, completing a 16-page form and providing evidence.

More than 276,000 diesel van drivers are estimated to be affected by London ULEZ charges. The zone is currently operational in the centre of London but by 2021 will be extended to all roads between the North and South Circular. TFL is expected to announce a similar scheme for car drivers soon.

Do you want to know more about the current fuel economy testing and Euro 6 emissions regulations? Read our in-depth guide for everything you need to know.

Skip advert
Advertisement
Skip advert
Advertisement

Most Popular

Jaguar Type 00 concept revealed: a bold electric future for the British brand
Jaguar Type 00
News
3 Dec 2024

Jaguar Type 00 concept revealed: a bold electric future for the British brand

Skoda Elroq review – a great-value compact electric SUV
Skoda Elroq
In-depth reviews
9 Dec 2024

Skoda Elroq review – a great-value compact electric SUV

Best new car deals 2024: this week’s top car offers
Carbuyer best new car deals hero
Deals
6 Dec 2024

Best new car deals 2024: this week’s top car offers

Tips & advice

View All
Car dashboard warning lights: what does each symbol mean?
Car dashboard symbols and meanings
Tips and advice
21 Oct 2024

Car dashboard warning lights: what does each symbol mean?

Electric car charging stations: public networks, charger types, apps and maps
Charging station
Tips and advice
23 Jul 2024

Electric car charging stations: public networks, charger types, apps and maps

PCP vs HP – which type of car finance is right for you?
PCP vs HP
Tips and advice
17 May 2022

PCP vs HP – which type of car finance is right for you?

Average speed cameras: how do they work?
Average speed cameras: how do they work?
Tips and advice
21 Mar 2024

Average speed cameras: how do they work?

Best cars

View All
Top 10 best car interiors
Peugeot 208 hatchback
Best cars
25 Jun 2021

Top 10 best car interiors

Top 10 best electric cars 2024
Best electric cars
Best cars
16 May 2024

Top 10 best electric cars 2024

Top 10 best cheap-to-run cars 2024
The best cheap-to-run cars 2023
Best cars
2 Jan 2024

Top 10 best cheap-to-run cars 2024

The UK's top 10 fastest hot hatchbacks 2024
Fastest hot hatchbacks hero
Best cars
2 Jan 2024

The UK's top 10 fastest hot hatchbacks 2024