London van scrappage scheme: all you need to know

London van scrappage scheme offers up to £7,000 off the cost of a new low-emissions van, or £9,500 off a pure-electric van

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As of late January 2020, London mayor Sadiq Khan has increased the amounts offered under a van scrappage scheme for small businesses operating within the capital city's Ultra Low Emission Zone (ULEZ).

The size of companies eligible has also been adjusted. Previously, only those with fewer than 10 employees ('micro businesses') could apply. Now, small businesses with up to 50 employees are also included.

They're able to claim up to £7,000 off a new low-emission van when handing over an older van, with a maximum of three scrappage claims per company. Companies switching to an electric van can claim up to £9,500, with the same three-claim cap.

Since April 2019, any vehicles (including private cars) driving within the ULEZ boundaries that don't meet Euro 4 (petrol) or Euro 6 (diesel) emissions standards have had to pay a daily charge of £12.50. The ULEZ charge applies 24 hours a day, seven days a week, and is levied in addition to the London Congestion Charge of £11.50 per day, which applies from 7am to 6pm from Monday to Friday for any vehicle emitting 75g/km of CO2 or more.

Any van that you wish to scrap in return for the £7,000 or £9,500 saving must not be eligible for free entry to the ULEZ. Companies applying for the grant must also either be registered at a Greater London address, or must have proof that their vans entered the London Congestion Charge zone at least 26 times during the six months prior to 22 February 2019.

If you're thinking of making the switch, read our guide to the best electric vans you can buy right now, as well our look at electric vans coming soon. We also explain how to charge an electric van and look at whether an electric van could be right for your business.