Sadiq Khan has made changes – but says ‘won’t step back or water down Ulez’ (Picture: AFP/Getty)

The Mayor of London has widened the Ulez scrappage scheme in an attempt to ease the financial impact on Londoners.

Sadiq Khan said everyone living in the city who owns a polluting car facing charges under Ulez will now be able to receive a grant of up to £2,000 to support an upgrade.

It comes after the controversial scheme was blamed for Labour’s narrow loss in the by-election for Boris Johnson’s former seat in Uxbridge and South Ruislip last month. 

Labour leader Sir Keir Starmer had asked Mr Khan to reflect on how the Ulez expansion to all London boroughs was being carried out.

Despite the expansion, Mr Khan said he is ‘not prepared to step back, delay or water down vital green policies like Ulez’ which will ‘save lives, protect children’s lungs and fight the climate crisis’.

He’s made the change after listening to the unease among residents in the capital amid a crippling cost of living crisis.

While previously only child benefit recipients, low-income and disabled people were eligible for scrappage grants, from August 21 all Londoners with non-Ulez compliant cars or motorcycles can apply.

Mayor of London Sadiq Khan will make a £2,000 grant available for people in London to upgrade their cars (Picture: Getty)

The Labour incumbent in City Hall also announced that small businesses and sole traders can get £21,000 to junk up to three vans, with £27,000 available for charities to replace three minibuses.

More support kicking in on Friday includes higher payments for switching to an electric vehicle, for charities with old vans, and for retrofitting an existing vehicle. Grants for replacing wheelchair accessible vehicles will double to £10,000.

It comes ahead of the Ulez expansion to beyond the capital’s north and south circular roads on August 29.

Drivers of vehicles which do not meet minimum emissions standards are charged a £12.50 daily fee for entering the zone.

Campaigners in London and the home counties have made clear their stance on the scheme with protests held against it.

Demonstrators have held strong protests against Mr Khan and the Ulez scheme (Picture: AFP)

Mr Khan said: ‘I have always said that expanding the Ulez to the whole of London was a difficult decision, and not one I took lightly – but it’s a decision I remain committed to seeing through.

‘I’m not prepared to step back, delay or water down vital green policies like Ulez, which will not only save lives and protect children’s lungs by cleaning up our polluted air but help us to fight the climate crisis.

‘I have continued to listen to the concerns of Londoners over recent months, and today I can announce a huge expansion to the scrappage scheme that means that all Londoners with non Ulez-compliant cars will now be able to get financial support to switch to greener, less polluting vehicles.

‘As we continue to build a greener and healthier London for everyone, I’m determined that no Londoner and no London business is left behind. We need to take people with us on the path to a sustainable future. We are ensuring that help is now available for everyone – and I urge Londoners to come and get it.’

Protesters opposed to the expansion of London’s Ultra Low Emissions Zone demonstrated outside BBC Broadcasting House on July 22 this year (Picture: Getty Images)

The mayor, who last week won a High Court challenge against five councils who wanted the Ulez expansion to be ruled unlawful, will use £50 million of City Hall’s reserves to fund the changes.

This will bring the total investment to £160 million – the most generous scrappage scheme ever seen in the UK, his office said.

Transport for London (TfL) says nine out of 10 cars seen driving in outer London on an average day comply with the Ulez standards.

But figures obtained by the RAC show more than 690,000 licensed cars in the whole of London are likely to be non-compliant.

This does not take into account other types of vehicles or those which enter London from neighbouring counties, which will continue to be excluded from the scrappage scheme.

Christina Calderato, TfL’s director of strategy and policy, said: ‘The expansion of the scrappage scheme means that the remaining minority of Londoners who need to drive and don’t have a car that meets the standards now have access to financial support to make the green transition.’

Nathan Coe, chief executive of Auto Trader, said: ‘Further support, in the shape of a scrappage scheme for all Londoners, shows that prioritising clean air doesn’t have to be a decision of pocket over planet.’

But Susan Hall, the Conservative Party’s candidate for the London mayor election in May next year, said the changes are ‘too little, too late’.

‘Thousands of families, small businesses and charities face financial ruin because of Sadiq Khan’s Ulez expansion, which will do next to nothing to improve air quality.

‘If I am elected Mayor, I will reverse this disastrous policy and replace it with a £50 million fund to reduce air pollution without taxing people.’

At least 200 Ulez cameras have already been torn down by furious Londoners protesting against the £12.50 expansion charge.

Transport for London also admitted it will need to keep the Ulez camera locations a secret to try and stop them being ‘vandalised or chopped down even faster than they already are’.

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The controversial scheme comes into place this month.