The Mayor of London is expanding the ultra low emission zone (ULEZ) scrappage scheme to offer £2,000 to all Londoners with non-compliant vehicles.
The scrappage scheme payment for vans has also increased from £5,000 to £7,000.
Small businesses and sole traders will also able to scrap three vans or minibuses in addition to increasing retrofit payments from £5,000 to £6,000.
The ULEZ scrappage scheme was previously only open to those entitled to means tested benefits, but the scheme was then extended as recently as last month to businesses registered in London with fewer than 50 employees.
The scheme will be available on a first-come first served basis.
The Mayor of London, Sadiq Khan, confirmed that the ULEZ would be expanded in November, last year.
The zone coverered an area between the North and South Circular roads, but as extended across the entire capital from August 29.
Vehicles must meet strict emission standards to drive in the ULEZ area: Euro 4 for petrol cars and vans; Euro 6 for diesel cars and vans; and Euro 3 for motorcycles and mopeds.
The expansion of London’s ultra-low emission zone (ULEZ) is estimated to net Transport for London (TfL) up to £300m in its first year.
Nathan Coe, Auto Trader chief executive, said: “This is great news for Londoners who have found it difficult to transition to less polluting vehicles.
“We previously called for an extension of the scrappage scheme’s terms and this announcement is a really encouraging move to show the positive impact that incentives and support can have on people who are keen to make sustainable decisions but who just can’t afford to.
“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.
“Some drivers may find that selling is still a better option rather than scrapping if their car is desirable in the broader national market – it’s important drivers do their research before deciding what’s best for them.
“We also welcome the scheme’s extension designed to support small businesses to drive more sustainable vehicles. Vans commonly make more frequent and longer journeys and so trying to incentivise businesses to make the switch to electric will no doubt be a great step in the right direction to improve Greater London’s air quality.”