TfL Ref: FOI-3154-2223 Thank you for your request received by us on 25 February 2023 asking for information about the Ultra-Low Emission Zone (ULEZ) scrappage scheme. Your request has been considered in accordance with the requirements of the Environmental Information Regulations and our information access policy. I can confirm that we hold the information you require. You specifically asked: 1) Does the Mayor of London have a professional counter fraud team that will risk assess and reject fraudulent applications for payment under the ULEZ scrappage scheme.
As the Mayor’s transport authority, Transport for London (TfL ) administers the ULEZ scrappage scheme on the Mayor’s behalf. All applications and supporting evidence are assessed by TfL’s service provider to establish an applicant’s eligibility for funding. TfL has a dedicated Counter Fraud and Corruption Team, to which any potential fraudulent applications identified are flagged as part of this process. Where there is any question over the validity of the information or evidence supplied, an application will be rejected. Counter fraud controls have been incorporated into the design of the scheme from the outset. The Counter-fraud & Corruption team has provided advice on effective counter- fraud controls as part of the new scheme.
2) Has the Mayor of London made any provision to take criminal action against fraudulent payment applications under the ULEZ scrappage Scheme?
3) If a scrappage payment was made on the basis of entitlement to a means tested benefit such as Housing Benefit, and a subsequent decision was made that the applicant was not entitled to these benefits (fraudulent or otherwise) please advise how:
- The Mayor will be aware that the recipient did not meet the qualifying conditions for the scrappage payment.
Eligibility for funding under the car and motorcycle element of the scrappage scheme is based on the evidence an individual submits at the point of application to demonstrate that they are in receipt of a qualifying benefit. TfL will act on any information subsequently received that indicates the application was fraudulent or the grant recipient was not in fact eligible for funding.
- How the Mayor will attempt to reclaim the public funds that were wrongly paid out?
The scrappage scheme terms and conditions make provision for TfL to seek repayment of a grant payment if an application is subsequently found to be fraudulent or the grant recipient is found to be ineligible at the point the application was made.
4) What steps has the Mayor taken to avoid organised fraud claiming the scrappage scheme payments?
Examples are:
- An old non compliant car being purchased in Luton and scrapped in London to claim the scrappage allowance.
- A person with an old non compliance car who otherwise lives in Slough claiming to live at a relative’s address in London to take advantage of the scrappage scheme.
- Fake or doctored benefit award letters being used to claim for a scrappage allowance.
The scrappage scheme eligibility criteria and supporting terms and conditions have been developed to help prevent abuse of the scheme and minimise the risk of fraud. For each grant option, there are specific evidential requirements that an applicant must meet in order to satisfy TfL that they are eligible for funding.
To address scenario a) above, a car for which funding is being applied for must have been owned for at least twelve months prior to the commencement of the scheme. In order for TfL to confirm this, a copy of the vehicle’s V5C Registration Document must be submitted as part of an application.
To address scenario b), a car for which funding is being applied for must be registered to the applicant at their home address or an individual who lives at the applicant’s address. Where the latter applies, proof of the individual’s residency must also be submitted as part of the application.
To address scenario c) and as per the response to question 1), all applications and supporting evidence are individually assessed to establish an applicant’s eligibility for scrappage scheme funding. In the event it is suspected that a fake or doctored benefit award letter has been submitted, this will be flagged for further investigation by TfL’s dedicated Counter Fraud & Corruption team.
In addition to the above, TfL carries out ongoing analysis to identify application anomalies that may indicate fraudulent activity. This includes but is not limited to identifying data duplicated across multiple applications (e.g. postcodes, telephone numbers, email addresses).
5) Does the scrappage scheme place a limit on the number of cars the applicant can claim scrappage payments for?
Yes – an applicant can only scrap one car.
6) When making the Council Tax Energy Rebate payments the Local Authorities were expected to verify the bank account details supplied by residents. What steps will the Mayor take to verify bank account details before making payment?
Payments are made in the form of a crossed cheque made payable to the named applicant and sent by post to the validated application address.
If this is not the information you are looking for, or if you are unable to access it for any reason, please do not hesitate to contact me.
Please see the attached information sheet for details of your right to appeal as well as information on copyright and what to do if you would like to re-use any of the information we have disclosed.
Yours sincerely
Eva Hextall
FOI Case Management Team
General Counsel
Transport for London
