The ultra-low emission zone (ULEZ) scrappage scheme has been expanded, with all Londoners now eligible and payments to van fleets increased.

The scrappage payment for vans will increase from £5,000 to £7,000, while grants to replace a non-compliant van with an electric van will increase from £7,500 to £9,500.

Small businesses and sole traders will be able to scrap three vans or minibuses.

In addition, payments to fleets retrofitting vehicles will increase from £5,000 to £6,000.

Additional support will also be available to charities, with payments available for minibuses increased from £7,000 to £9,000, while disabled Londoners will see wheelchair adapted vehicle grants double from £5,000 to £10,000. 

London’s ULEZ currently covers an area between the North and South Circular roads but is due to be expanded across the entire capital from August 29.

Drivers of affected vehicles who do not pay the £12.50 daily charge will face a fine of up to £160.

To comply with the ULEZ, petrol cars and vans must be Euro 4 and diesel cars and vans must be Euro 6. Motorcycles and mopeds must be Euro 3 to comply.

The original ULEZ scheme was introduced in April 2019 to cover central London before being expanded to the North/South Circular boundaries in October 2021. 

Pressure had been mounting on the Mayor of London, Sadiq Khan, after Labour leader Sir Keir Starmer urged the Labour mayor to "reflect" on the ULEZ expansion following the party's by-election loss in Uxbridge in July.

In order to fund the expansion, the Khan plans to use £50 million of City Hall's reserves. This takes the total scrappage fund from £110m to £160m, with more than £60m sill available, according to Transport for London (TfL) 

Announcing the expansion of the scrappage scheme, Khan said that he was “not prepared to step back, delay or water down vital green policies like ULEZ”.

He added: “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.”