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Low-income Londoners were today offered £2,000 to trade in older cars in a £25 million initiative to clean up the capital’s toxic air.

The scrappage scheme aims to help poorer suburban residents avoid having to pay the £12.50-a-day ultra low emission zone (Ulez) levy.

Mayor Sadiq Khan has vowed to expand the Ulez zone beyond central London to the boundaries of the North and South Circular roads in October 2021 if he is re-elected next May.

Today’s scheme also offers £1,000 for older motorbikes and runs alongside a £23 million scheme offering small businesses and charities £3,500 to scrap an older van or £6,000 to switch to an electric vehicle.

Vehicle emissions account for about half of nitrogen oxide (NOx) pollution in London.

This week it was revealed that the Ulez had reduced NOx levels by 31 per cent since its introduction in April, although London still remains in breach of EU rules.

The number of vehicles in the zone breaching the Mayor’s exhaust emission targets fell 37.8 per cent, from 35,578 vehicles during the day in March to 22,133 last month.

The scrappage scheme is open to people living in Greater London who receive a means-tested benefit, such as universal credit, child tax credit or housing benefit.

Their vehicle has to fail the current Ulez rules — typically, petrol cars more than 14 years old and diesel cars more than four years old.

Zipcar, the car-sharing firm, offered 100 Londoners taking part in the scrappage scheme a further £2,000 of “free” driving, which equates to about 200 hours of motoring. Mr Khan was today hosting an international air quality summit at City Hall.