Have an old car that’s on it’s last legs and would be more hassle to sell than it’s worth? If you’re looking to get rid of your old banger for something more reliable — with all the bells and whistles — you may qualify for one of the UK’s scrappage schemes.
However, the scrappage schemes in the UK have changed a lot in recent years – with the rise of electric cars, changes to emissions regulations and payment structures.
Select Car Leasing are on hand to help and have written this handy guide explaining what they are and how the changes affect your bottom line.
Introduction to Scrappage Schemes in the UK
Vehicle scrappage schemes are programmes designed to encourage drivers to get rid of their older model cars for newer, often cleaner models.
Scrappage schemes in the UK have historically been used for a variety of purposes. Government backed schemes are and have historically been used to clean up emissions — namely to scrap high-emission, older cars and give participants money towards newer, low-emission alternatives like EVs and hybrids.
Manufacturers sometimes offer scrappage schemes with cash incentives. For example, a manufacturer may take and scrap your old car in exchange for a discount towards any car purchased at the dealership.
The history of UK Scrappage Schemes
2009 saw the first widespread UK scrappage scheme. In response to the global financial crisis, the UK government introduced a scheme in the budget that year.
The aim was to give car owners a £2,000 incentive to motorists who scrapped cars over ten years old and purchased a new vehicle. Nearly 400,000 older vehicles were scrapped by March 2010 when the scheme ended, leading to a significant boost in new car sales.
To combat air pollution, London introduced the Ultra Low Emissions Zone (ULEZ) scrappage scheme in 2023 — similarly offering £2000 for people to scrap high-emission cars and put them towards hybrid and electric vehicles. Towns and cities across the UK have introduced similar zones — like Bristol and Glasgow — as well as offering additional loans and grants to help people make the switch.
The scheme closed to new applications on 8 September 2024, after committing over £186 million to approximately 54,000 applicants
Current UK Scrappage Scheme Policies
Currently, there are no UK-wide scrappage schemes. Cities like London, Bristol and Glasgow offer grants and loans to help people afford a hybrid/electric alternative to their old petrol or diesel car if they live in a low-emission zone.
Some car manufacturers — namely Renault and Volkswagen — offer UK-based scrappage schemes that provide discounts on newer, typically more fuel-efficient models. Renault offer up to £2,750 on a new hybrid or electric Renault, whereas Volkswagen offer between £1750 To £4500 off the purchase or lease of their e-Golf lines.
Other private firms, dealerships or used and new car sites typically have scrappage schemes — but you’ll often have to negotiate the amount you’ll receive in person.
Who qualifies for a scrappage scheme?
To qualify for a car scrappage scheme, the primary factor is the age of your vehicle. The age of your car determines whether it meets the required European emissions standards. If your vehicle falls into one of these emissions categories, that means it isn’t considered ULEZ compliant and therefore you likely qualify for scrappage:
Petrol Vehicles:
- Euro 3 or lower: Most petrol vehicles registered before January 1, 2006, typically do not meet the ULEZ standards and are not compliant.
Diesel Vehicles:
- Euro 5 or lower: Diesel vehicles registered before September 1, 2015, usually do not meet the Euro 6 standard and are not ULEZ-compliant.
Vans, Trucks, and Other Vehicles:
- Diesel vans and trucks: If they do not meet Euro 6.
- Petrol vans and trucks: If they do not meet Euro 4.
Motorcycles:
- Euro 2 or lower: Motorcycles that were registered before July 2007 generally do not meet ULEZ standards.
The condition of the car is less important than the level of emissions it produces, as scrappage schemes are designed to encourage people to replace older, more polluting cars with newer, environmentally-friendly models. If you're driving an old, low-value car, a scrappage scheme could help you save some money.
Generally, petrol cars registered after 2005 and diesel cars registered before 2015 are eligible for scrappage, with a few exceptions.
However, if your vehicle is classified as Category D (Cat D) by your insurer, you may not qualify for these schemes.
Scrappage scheme news in 2025
As of February 2025, there are no announced plans for new nationwide scrappage schemes in the UK. The Transport for London (TfL) Ultra Low Emission Zone (ULEZ) scrappage scheme concluded on 7 September 2024, having committed over £186 million to assist nearly 54,000 applicants in replacing older, more polluting vehicles.
While the UK government has not introduced a new national scrappage scheme, regional initiatives continue to support the transition to cleaner vehicles. For instance, Scotland offers a Low Emission Zone (LEZ) support fund, administered by the Energy Saving Trust, providing grants to households and small businesses to scrap non-LEZ-compliant vehicles.
Additionally, the Society of Motor Manufacturers and Traders (SMMT) has proposed a £1.5 billion scrappage scheme to encourage the purchase of diesel and petrol cars. However, this proposal is still under discussion and has not been implemented.
Why Choose Select Car Leasing for Your Next Vehicle?
Need help choosing the right hybrid car for you? Select Car Leasing are always on hand to get you the best environmentally-friendly vehicle at the right price.
When you choose us, you’ll benefit from:
- Flexible leasing options to suit your needs
- Dedicated support from an account manager and administrator throughout your leasing journey
- Unbeatable discounts that lead the market
- A wide selection of in-stock special offers with fast delivery
Contact us today — our friendly team is ready to help you lease the vehicle that’s just right for you.
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