Mayor of London launches scrappage scheme for vans

London has announced details of a van scrappage scheme for 2019. The Mayor, Sadiq Khan, has pledged £23 million of public money for the scheme, with van buyers getting financial incentives to switch to cleaner vehicles.

The van scrappage scheme will be in place ahead of the introduction of central London’s Ultra Low Emission Zone (ULEZ) on 8 April 2019, which will introduce a new £12.50 daily charge for diesel vans that do not meet the latest Euro6 standards. The ULEZ will be expanded to greater London in 2020 and the North and South circular by 2021. 

The ULEZ charge will operate separately from the £11.50 London Congestion Charge, which means drivers of vans built before 2015 will pay a total of £24 to enter central London between 7:00am and 6:00pm, Monday to Friday.

At this stage it isn't clear how much money van buyers will be offered to scrap their old vehicles, but the scheme will be limited to small businesses only – defined as those with fewer than 10 employees.

Khan has asked ministers to match-fund London’s proposed scrappage scheme with £23 million of Government money so the scrappage scheme could be expanded to support Londoners on low incomes and charity vehicles. 

The Government wants to change the way vans are taxed in 2019, with it favouring an emissions system that provides discounts for vehicles that emit lower levels of CO2. In addition to VED, the Government is also investigating the future of Van Benefit Charge and the Van Fuel Benefit Charge.