The ULEZ scrappage scheme could be a smart way for small businesses with fewer than 10 employees, who regularly travel through these zones for work, to save money on ULEZ emission zone charges. The initiative, introduced by the Mayor of London, is designed to ease the financial burden on small businesses and charities. Eligible organisations can receive a business grant to replace up to three vehicles per company with new vans that comply with EURO 6 regulations. This scheme not only helps businesses mitigate costs but also contributes to the broader goal of reducing environmental pollution.

If your business qualifies for this grant, you’ll have several options to consider when selecting new vans for sale. These vehicles, compliant with the latest emission standards, offer an economical and environmentally friendly solution to navigate the city’s emission zones. Continue reading to learn more about how your business can benefit from this opportunity and explore the range of new vans that could transform the way you operate in urban areas.

Scrappage Scheme Options for Buying New Vans 

CHOICE 1: Congestion Charge Zone Users (CCZ)

Under the scrappage scheme, if you’re a regular user of the Congestion Charge Zone (CCZ), there’s an opportunity to receive a grant of £3500. This grant is aimed at replacing your non-compliant van with one of the new vans that meets emission standards. To qualify, your van must have been driven through a CCZ at least 52 times before February 22nd, 2019. Eligibility is verified through the dated transactions recorded in your London road users charging account.

This option within the scrappage scheme is particularly beneficial for businesses frequently operating within CCZs, as it facilitates the transition to compliant vehicles. Exploring new vans that are eligible for this grant can significantly reduce the financial impact of upgrading to a more environmentally-friendly van that adheres to current emissions regulations.

CHOICE 2: EURO 6 Replacement

The EURO 6 Replacement option in the scrappage scheme is designed for those needing to replace a van that doesn’t meet EURO 6 engine standards. This choice is ideal for businesses or individuals planning to lease or purchase a brand new EURO 6 compliant van or minibus. Notably, the minibus option is exclusively available to charities, and all applicants must be registered at a Greater London address. Like the previous option, this grant is valued at £3500 and provides an excellent opportunity to upgrade to a new, environmentally-friendly vehicle.

For those looking to buy new vans, this scrappage scheme option is a financially viable way to ensure compliance with the latest emission standards. By taking advantage of this grant, you can invest in a new van or minibus that not only meets current environmental regulations but also enhances the efficiency and sustainability of your operations in Greater London.

CHOICE 3Electric Van Contribution

This scrappage scheme option is designed for those looking to replace a van that doesn’t meet the EURO 6 engine standards with a more environmentally friendly choice, such as an electric van. The grant offered is up to £6000, which includes £3500 for scrapping your non-compliant van or minibus. An additional £2500 is provided towards the purchase of a light electric commercial van or minibus, with the remaining amount allocated for insuring the new vehicle. It’s important to note that the minibus option is exclusive to charities.

For smaller-sized businesses with up to 10 employees, or charities that operate minibuses and are based outside the Greater London area, the criteria slightly differ. In these cases, the vehicle must also meet the criteria outlined in option 1, where it’s required to have passed through a CCZ at least once in the six months preceding February 22nd, 2019. This option offers a great opportunity for eligible businesses and charities to upgrade to new vans that are not only compliant with the latest emissions standards but also contribute to a greener environment.

An added incentive in option 3 of the scrappage scheme for those considering new vans for sale is the ability to claim back the first three months immediately after being accepted for the grant. We recognize that transitioning to an electric van might not be feasible for everyone at this moment. Therefore, we recommend thoroughly researching and understanding if an electric van suits your current needs. This consideration is crucial as it ensures that your choice aligns with both your operational requirements and environmental goals. Getting informed about the benefits and practicalities of electric vans will help you make a well-informed decision that’s best for your business or personal use.

Is Your Business Qualified for Scrappage Scheme Benefits?

For businesses interested in options 2 and 3 of the scrappage scheme, there are specific criteria to meet for the grant to be processed. Firstly, you must provide proof of tenancy at an address located in the Greater London area. Acceptable documentation includes letters or documents from HMRC, Companies House, or any charity commission.

Additionally, your business should meet certain financial thresholds. It must have either turned over up to £632,000 or have a balance sheet total of up to £316,000 in the same tax year or at least the year preceding. This financial criterion necessitates that your business is either registered with Companies House or is VAT compliant according to the government’s rules and regulations. Meeting these requirements is crucial for businesses exploring the possibility of buying new vans through these advantageous scrappage scheme options.

How The Scrappage Scheme Can Help Your Business

The ULEZ van and minibus scrappage scheme can offer a number of benefits to businesses in London. By scrapping or retrofitting your old van or minibus, you can:

  • Reduce your air pollution emissions and improve air quality for your employees and customers.
  • Save money on fuel and maintenance costs.
  • Improve the image of your business and attract new customers.
  • Comply with the ULEZ emissions standards and avoid fines.

If you are a small business, micro business, sole trader or charity in London, the ULEZ van and minibus scrappage scheme is a great opportunity to upgrade your fleet to cleaner vehicles. The £2,000 increase in grant payments makes the scheme even more attractive, so don’t delay in applying.

Charities and the Scrappage Scheme

If you represent a charity interested in the benefits of the scrappage scheme, it’s essential to ensure your charity is registered with the charity commission. Having proof of this registration is crucial when you apply for the scheme, as you may be required to provide this documentation for further verification. This step is an important part of the process for charities looking to take advantage of the scrappage scheme, potentially leading to the acquisition of new vans that are compliant with current environmental standards.

Is Your Old Van Eligible for the Scrappage Scheme? 

It’s essential to note that any van you wish to include in the scrappage scheme must meet specific criteria. Firstly, the van must be VAT registered and have a valid MOT. Additionally, it needs to have been registered at least a year before February 22nd, 2019. When it’s time to scrap the van, this must be done by professionals at an Authorised Treatment Facility (ATF). 

Meeting these standards not only makes your van eligible for the scrappage scheme but also prepares you for upgrading to ULEZ compliant vans. If you’re considering replacing your van through the scrappage scheme, ask yourself: Does your current van meet the ULEZ standards? Answering this question is a crucial step towards accessing the benefits of the scheme, including the opportunity to acquire a new, environmentally compliant van.

ULEZ Impacting New Vans for Sale

The Ultra Low Emission Zones (ULEZ) might seem straightforward, but there’s a wealth of information available for those who wish to delve deeper. We’ve compiled an in-depth blog: Buying the Best ULEz Compliant Van that covers everything from fuel consumption to the specific NoX and CO2 measurements. It’s designed to keep you fully informed about the rules and regulations of ULEZ. Understanding these details is crucial for appreciating how these zones protect both our environment and the pedestrians on our city footpaths.

Regarding EURO 6 enginestandards, their impact on our environment and urban areas is significant. We invite you to explore another blog post: What Does Euro 6 Mean When Buying a New Van where we dive into the specifics of what constitutes a EURO 6 engine, how it aids environmental conservation, and the primary advantages it offers. Additionally, the blog addresses the penalties for non-compliance with these laws and how vans are evolving to meet these ever-changing regulations.

ULEZ Scrappage Scheme Van & Minibus

The ULEZ van and minibus scrappage scheme is a government-funded program that helps small businesses, micro businesses, sole traders and charities in London to scrap or retrofit their old, polluting vans and minibusses. The scheme was launched in February 2019 and is open to vehicles that do not meet the ULEZ emissions standards.

On 4th August 2023, the government announced a £2,000 increase in the grant payments available under the scheme. This means that successful applicants can now get up to £11,500 to scrap or retrofit a non-compliant van or minibus.

The increase in payments is part of the government’s plan to expand the ULEZ to cover the whole of Greater London by 2025. The expansion is expected to reduce air pollution in London by up to 30%, and the scrappage scheme is designed to help businesses and charities to make the switch to cleaner vehicles.

To be eligible for the ULEZ van and minibus scrappage scheme, your vehicle must meet the following criteria:

  • Registered to a small business, micro business, sole trader or registered charity with a registered address in London.
  • It must be a van or minibus that does not meet the ULEZ emissions standards.
  • Registered with the Driver and Vehicle Licensing Agency (DVLA) to you (or someone who lives at your address) since 30 January 2022 or earlier.

If your vehicle meets these criteria, you can apply for a grant payment of up to £11,500 to scrap or retrofit your van or minibus. The amount of the grant payment will depend on the type of vehicle you are scrapping or retrofitting and whether you are replacing it with a cleaner vehicle.

How To Apply for the ULEZ Van & Minibus Scrappage Scheme Grant 

To apply for a grant payment, you will need to complete an online application form. You will need to provide evidence that your vehicle is eligible for the scheme, such as your DVLA registration certificate and MOT certificate. You will also need to provide evidence that your business or charity is registered in London.

The application process is open now and closes on 31st March 2024. The government expects to process all applications within 12 weeks of receipt.

For more information about the ULEZ van and minibus scrappage scheme, visit the Transport for London website: 

For more comprehensive insights or if you have specific queries, please feel free to get in contact with us. Staying informed is key to ensuring you remain compliant and make the most of the latest environmental and vehicular advancements.