Sadiq Khan under fire for 'significant alterations' to Ulez scrappage scheme - 'Not honest public service'

WATCH: Neonatologist Dr Chinthika Piyasena explains why the ULEZ expansion is good news for Londoners

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TRANSPORT FOR LONDON

Hemma Visavadia

By Hemma Visavadia


Published: 11/11/2025

- 10:10

The Ulez scrappage scheme ended in September last year and saw drivers receive £2,000 in exchange for vehicles

Sadiq Khan's Ulez scheme has come under fire for failing to alert drivers to significant changes within its scrappage scheme, which could have misled thousands.

A report by the Local Government and Social Care Ombudsman revealed that Transport for London made "significant alterations" to both its van, minibus, car and motorcycle scheme without following proper procedures or alerting the public.


The Ombudsman claimed that London drivers wasted time submitting applications for grants, unaware that their vehicles had become ineligible under new criteria that TfL had failed to communicate.

The scheme ran from January 30, 2023, until September 8, 2024, and saw eligible drivers receive up to £2,000 for a car, up to £7,000 for a van or minibus for small businesses in exchange for scrapping non-compliant vehicles.

Successful applicants could also choose to have their vehicles donated to Ukraine to aid the war effort against Russia.

While the scheme helped remove roughly 50,000 non-compliant Ulez cars, TfL began rejecting applications from vehicles with unpaid penalty charge notices, despite this requirement appearing nowhere in the published scheme rules.

Drivers have argued that Ulez, alongside the Congestion Charge, have made driving unaffordable throughout London, which Sir Khan has contested.

He said: "This is about supporting Londoners to have cleaner air. No level of air pollution is safe, and that's why we have to make more progress. Ulez is not about raising money for TfL."

Sadiq Khan and a Ulez signSadiq Khan has continually praised the Ulez scheme | PA

The Ombudsman's investigation found that TfL introduced this as an "internal business rule" without updating the scheme's terms and conditions on its website.

Amerdeep Clarke, Local Government and Social Care Ombudsman, said: "We recognise why Transport for London decided to update its vehicle scrappage schemes.

"But failing to clearly communicate these changes to potential applicants does not reflect the core principles of fair, transparent and honest public service."

The report detailed how, without warning, the transport body began refusing applications for vehicles that had operated as licensed taxis within 12 months before the scheme's January 2023 launch.

Cars parked in front of a Ulez sign

The Ulez scrappage scheme has come under fire for failing to disclose changes in its eligibility criteria

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PA

It found that TfL only informed impacted individuals after they had already submitted their applications, having spent time preparing documentation for vehicles that were no longer eligible.

When pressed by the Ombudsman, TfL acknowledged that scheme modifications were introduced through "informal discussions" rather than through proper decision-making channels.

It has now called on TfL to establish formal documented procedures for determining and approving modifications to its scrappage scheme and any similar future programmes.

A Ulez screen

The scrappage scheme offered drivers money in exchange for removing their vehicle from London roads

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PA

Within three months, TfL has been warned that it must demonstrate that it has implemented processes to ensure that all changes raised by the ombudsman have been addressed.

TfL reportedly accepted all recommendations, which aim to prevent future instances where members of the public waste time on applications.

Ms Clarke added: "We welcome Transport for London's commitment to publishing any future updates to these, and similar schemes, on its website, ensuring residents are properly informed if and when any changes will take effect."

To meet Ulez requirements, drivers are required to meet Euro 6 emissions standards, which generally impact cars registered after September 2015. Drivers caught with non-compliant cars are charged £12 daily for entering Ulez zones.