• Van Scrappage Scheme 2023: A Comprehensive Guide
  • Van Scrappage Scheme 2023: A Comprehensive Guide

Van Scrappage Scheme 2023: A Comprehensive Guide

Take advantage of the London ULEZ scrappage scheme and upgrade to a Euro 6 vehicle

Following the announcement that the Ultra Low Emission Zone (ULEZ) is expanding across Greater London from Tuesday 29th August 2023, comes news of a newly launched van scrappage scheme. 

Part of a larger £110 million scrappage program, it will provide financial support for London motorists in a bid to help them scrap vehicles that don’t meet ULEZ criteria. The city’s highest polluting vehicles will be charged a daily £12.50 fee if they don’t meet strict Euro emissions standards. 

Check out our dedicated ULEZ expansion article for more details on how will it affect the London boroughs and read on to discover how you can benefit from the van scrappage scheme 2023…    

June 2023 - Update

In the latest announcement made by Mayor Sadiq Khan, an expansion of the scrappage scheme ULEZ has been confirmed. From the end of July, the scheme will now benefit all small businesses in the capital city as well as London families receiving child benefits. 

If you are a small business owner or sole trader, this is an ideal opportunity to replace a non-ULEZ compliant car or van. The ULEZ van scrappage scheme will now allow small businesses with up to 50 employees to apply - this is an increase from the previous 10-person micro business restrictions previously in place. 

The new ULEZ scrappage scheme expansion changes include:

  • Applications are open to all London residents who receive child benefit
  • Any registered London-based business with 50 employees or less can now apply (an increase from the previous 10-employee limit)
  • Charities operating in London are now eligible to scrap or retrofit up to three vans or minibuses (this is an increase from just one)
  • An extended grace period for sole traders, charities, micro and small businesses who have ordered a new ULEZ-compliant vehicle, which will be honoured beyond the 29th August cut-off date (this is now extended by up to six months upon proof of purchase if a vehicle is subject to delays)

To date, almost 7,000 applications for The Mayor’s ULEZ scrappage scheme have been approved, resulting in a commitment of over £25 million by the Government in grants available to eligible applicants from the overall £110 million original pledge. 

From these, almost 4,000 were to benefit van and minibus drivers - over 2,000 of these sole traders, and 1,800 from micro businesses. We’ve spoken with customers who have been successful in their application for the ULEZ scrappage scheme, so if you are a van owner that is eligible, we suggest you take advantage of the scheme’s current expansion opportunities.


Key takeaways from the article:

We appreciate that there’s a lot of information to digest about the 2023 van scrappage scheme, so here are some of the main points to remember:

  • Provides financial support to vehicle owners in London’s ULEZ
  • Receive a grant of up to £9,500 per van
  • Designed to support sole traders, micro-businesses (up to 10 employees) and registered charities that don’t meet the ULEZ standards
  • Now expanded to include small businesses with up to 50 employees
  • The sale of new diesel and petrol vans will be banned from 2030    

What is the future of diesel vans in the UK?

The future of diesel vans in the UK will be affected by a ban on the sale of new diesel (and petrol) vans from 2030. Manufacturers have been issued with zero emission targets which means that all new cars and vans must have zero emissions at the tailpipe by 2035. 

This means that after 2035, only fully electric vans can be sold as hybrid vehicles (these are part electric, part diesel or petrol powered) will be banned too. One thing’s for sure is that you’ll still be able to drive your existing diesel or petrol van after 2030, but you may be limited to where you can drive without incurring a fee. 

diesel scrappage scheme

If the ULEZ expansion is anything to go by, then other towns and cities in the UK will no doubt implement zero-emission zones of their own. Take the Clean Air Zones and Low Emission Neighbourhood schemes as an example of how local councils are trying to improve air quality in their areas.

It will come as no surprise that key industry figures in the automotive industry have expressed deep concern about the 2030 deadline, which is now only seven years away. This concern is paired with the new Euro 7 emission regulations due to affect drivers of new automobiles and light commercial vehicles effective from 1st July 2025.   

Should I buy a diesel van now?

We’ve no doubt you’ll be left with the question; ‘should I buy a diesel van now?’. Well, whilst the answer to that is debatable, let's look at the facts to help you come to an informed conclusion… 

The ban on the sale of diesel vans applies to new vans only, so won’t currently affect the sale of nearly new or used vans on the secondhand market. This means that as it stands in 2023, there is a realistic window in which you still have time to purchase a diesel-fuelled van and get the most out of it. 

Let’s look at the practicalities here. In the midst of a ‘cost of living crisis’, buying a diesel van could be more economical - especially if you cover a lot of miles. In terms of standard combustion engine vehicles, diesel proves to be more economical than petrol models.    

Can I claim for buying a van on my tax return?

When it comes to claiming for buying a van on your tax return, then you could be in luck. If you’re self-employed as a sole trader or are a business owner, you can in fact claim the cost of buying a van against your income tax bill. 

As explained on the GOV.UK website, if you purchase a vehicle for your business then you can claim it as capital allowance; this means that before you pay tax, you can deduct part of the value of the van from your profits first. 

Will the van scrappage scheme return?

The short answer is yes, the scrappage schemes will return in 2023. Prompted by the expansion of ultra-low emission zone, the Mayor of London - Sadiq Khan - has launched a vehicle scrappage scheme from the 30th of January 2023. 

london ulez zone expansion

Dubbed the ‘London ULEZ scrappage scheme’, eligible residents and business owners can scrap their vans, minibuses, motorcycles and wheelchair-accessible vehicles (WAVs) in exchange for a grant to purchase a ULEZ-compliant vehicle. We explain more about the van and car scrappage scheme, below…  

Will there be a vehicle scrappage scheme in 2023?

In a bid to help clear up London’s toxic air, the 2023 scrappage scheme is providing a total of £110 million in financial assistance to help eligible Londoners upgrade to a ULEZ-friendly vehicle. 

Drivers of the highest polluting vehicles will be encouraged to scrap them in exchange for grant payment. These payments vary depending on the type of vehicle you wish to scrap, they are:

  • CARS - a grant of up to £2,000 per vehicle is available
  • VANS - a grant of up to £9,500 per vehicle is available
  • MINIBUS SCRAPAGE - a grant of up to £9,500 per vehicle is available
  • MOTORCYCLES - a grant of up to £1,000 per vehicle is available
  • WAVS (Wheelchair Accessible Vehicles) - a grant of up to £5,000 per vehicle is available 

In June 2023, the Mayor of London announced his plans to expand the ULEZ scrappage scheme to benefit small businesses with up to 50 employees, as well as Londoners who rely on child benefits. Further support to charities is also now available, allowing registered causes to scrap or retrofit up to three vans instead of one.  

Is there a program for businesses and charities?

Van owners of non-compliant ULEZ autos will be pleased to hear the new 2023 scrappage scheme is now open for applications. Eligible drivers of light commercial vehicles can take advantage of the scheme and upgrade to a van that meets current Euro 6 emission standards.

Facilitated by Transport for London (TfL) the scheme is designed to support sole traders, micro-businesses (up to 10 employees) and registered charities that don’t meet the ULEZ standards. As of June 2023, small businesses with up to 50 employees are also eligible to apply. Only individuals and organisations within all 33 district of Greater London (including the City of London) can apply for the 2023 scrappage scheme. 

van scrappage scheme

There are six options available for eligible applicants to choose from, they are:

  1. Scrap a van for a grant payment of up to £5,000
  2. Scrap a minibus for a grant payment of up to £7,000
  3. Retrofit a van for a grant payment of up to £5,000
  4. Retrofit a minibus for a grant payment of up to £5,000
  5. Scrap a van and replace it with an electric van for a grant payment of up to £7,500
  6. Scrap a minibus and replace it with an electric minibus for a grant payment of up to £9,500 

Is there a scrappage program for cars? 

But it’s not just van drivers that are set to benefit from the scrappage program, as car owners can apply too. Eligible applicants can receive up to £2,000 when they choose to scrap their car in favour of a Euro 4 emissions auto (the standard for petrol-powered cars) or a fully electric model. 

Londoners who receive a certain low income or are disabled and receive disability benefits can apply to benefit from the ULEZ-inspired car scrappage plan which is divided into two ‘sub-schemes’. You can apply for one of the following grant payment options:

  • Scrap a car for a grant payment of up to £2,000
  • Scrap a car plus apply for one adult-rate annual bus and tram pass for a grant payment of up to £1,600
  • Scrap a car plus apply for two adult-rate annual buses and tram passes for a grant payment of up to £1,200

If you’re in the expanded London ULEZ catchment area and considering upgrading to an emission-compliant car to avoid the daily charge, then discover the range of eco-friendly cars we have available at our sister site Wilsons Epsom.

What will happen to diesel vans after 2030?

As we’ve established, the sale of new diesel vans will be banned from 2030, but drivers of diesel vans need not panic as you’ll still be able to drive your existing diesel van after 2030. This means you don’t need to feel pressured into getting rid of your diesel-fuelled van before you need to, and you’ll still be able to purchase a standard combustion engine van on the second hand market after 2030.   

Does Renault have a scrappage scheme?

Renault doesn’t currently offer a scrappage scheme specifically for vans but is offering the ‘New for Old Scheme’ until June 2023 which means you can trade in your old van in exchange for a new Renault car.  

Does Peugeot have a scrappage scheme?

If you’re hoping to trade in your existing petrol or diesel-powered van for a new Peugeot model then you’re in for a treat! Peugeot UK is offering a scrappage discount for vans registered before the 31st December 2010 which can be redeemed against its award-winning models, such as the popular Boxer van.  

Does my van qualify for the scrappage scheme?

Not all vans qualify for the current 2023 scrappage measures, so if you wish to scrap your vehicle, it must meet the following criteria:

  • A ‘light’ van which is up to (and including) 3.5 tonnes gross vehicle weight
  • Registered with the Driver and Vehicle Licensing Agency (DVLA) in the name of the business, sole trader or charity in question
  • Insured for business use only
  • Certified with valid road tax and MOT at the time of application
  • Non-compliant with ULEZ (this includes pre-Euro 6 diesel vans and pre-Euro 4 petrol vans)

The vehicle you choose as a replacement must meet the following criteria:

  • A fully electric ‘light’ van which is up to (and including 3.5 tonnes gross vehicle weight
  • Purchased outright or on a hire or lease contract that is at least two years long
  • Be the same body type as the van you scrapped

If you choose to retrofit your van using the grant payment instead, then you’ll be bound by the following criteria:

  • A ‘light’ van which is up to (and including) 3.5 tonnes gross vehicle weight 
  • Registered with the DVLA in the name of the business, sole trader or charity in question 
  • Registered on the Clean Vehicle Retrofit Accreditation Scheme (CVRAS) 
  • Retrofitted by a CVRAS-approved company only, with an approved emissions reduction system

How old does a van have to be to be tax-exempt?

Not all vans need to be taxed. If your van was built at least 40 years ago, then you do not have to pay vehicle tax on it - this is known as a historic vehicle tax exemption. For your van to be tax-exempt right now, it will have been built before the 1st of January 1982. This date increases with each new tax year (1st April 2023). 

Scrap your van and upgrade to a ULEZ-compliant one

Here at Loads of Vans in Sutton London, we can help you upgrade to a ULEZ-compliant van that will ensure you don’t pay the £12.50 daily fee to drive in and out of London. 

You can beat the ULEZ scheme and instead of paying £12.50 per day in charges, you can pay £12.50 per day to drive away in a brand new Renault Trafic van - yes, really! If you’re a London resident or a regular traveller to the capital, then make sure you’re exempt to keep costs down. 

We’re keeping the nation moving with our range of Euro 6 vans for sale which are in stock and ready to drive away today. Why not keep your motoring costs to a minimum when you swap your diesel van for a fully electric model; from the Citroën ë-Dispatch to the Peugeot e-Expert and Nissan E-NV200, you won’t be left waiting when it comes to electric power. 

Get in touch with one of our team members today if you require more information, wish to book a test drive or want to know more about the price of a model. We offer flexible finance options and we can give you a quote in no time.

best van scrappage scheme

Check our website's 'News' section for more information on ULEZ and grants available

Visit our website for more information on available grants, conditions and how to apply. We have a dedicated article on Government grants for electric vehicles and we are committed to providing updates about the ULEZ expansion happening this year, so you can be well-informed and make the best decision for you and your business. You can access the 'News' section and read all our guides here.