Car tax: Only a third of London ULEZ scrap payouts given, despite upcoming price increase

Sadiq Khan outlines why ULEZ has come into force in London

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Grants worth £2,000 for cars and £1,000 for motorbikes or mopeds are being offered on a first-come, first-served basis. This comes as TfL plan to raise car tax rates as part of the Ultra-Low Emissions Zone (ULEZ) in an attempt to lower pollution in the city.

London Mayor Sadiq Khan set aside £61million for low-income and disabled Londoners, small businesses and charities.

This is to help them scrap petrol and diesel vehicles which breach the ULEZ emission rules.

The zone is due to expand from Central London to the inner boundaries of the North and South circular roads on October 25.

Drivers of non-compliant vehicles will have to pay a £12.50-a-day levy.

According to data from the Standard, TfL have received 16,089 applications by Monday last week.

Despite this, only 5,348 payments have been made.

It also emerged classic cars built before 1973 will not have to pay the ULEZ car tax.

A number of car enthusiasts raised concerns they would be unable to comply with it.

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A spokesperson for TfL said some applicants did not claim the money immediately, which resulted in a gap of almost 1,300 cases. 

They also said 6,630 of the 16,089 applications for grants to encourage Londoners to scrap non-compliant cars, motorbikes or mopeds had been accepted by last week.

More than half of the applications had been rejected, mainly due to insufficient evidence of ineligible vehicles.

About £9.3million had been paid in different scrappage grants, which has taken around 10,000 vehicles off the road.

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