Research by the RAC has uncovered the astonishing financial impact of London’s expanded Ultra-Low Emission Zone (ULEZ).
The larger ULEZ area introduced by Transport for London (TfL) has captured an estimated 1.5 million extra journeys made by non-compliant vehicles each month.
The result is an additional £93.6 million of revenue in the first year of operation, thanks to more drivers having to pay the £12.50 daily charge.
Zoned out
When first introduced in April 2019, the ULEZ area only covered central London. Analysis of TfL figures by the RAC found this original zone saw 329,527 journeys made by non-compliant vehicles each month.
In October 2021, the ULEZ was expanded to cover the area of London surrounded by the North and South Circular roads. This encapsulates close to four million people inside the widened zone.
From the beginning of November 2021 through to July 2022, an average of 1.9 million journeys were made into the zone each month by vehicles not conforming to either Euro 6 diesel or Euro 4 petrol emissions standards.
The RAC estimates that TfL will have received a total income of more than £112 million from the entire ULEZ during an eight-month period. This compares to a previous amount of less than £19 million for the original ULEZ area.
‘Need for a pragmatic approach’
Such figures do not include penalty charge notices (PCNs) for non-payment of the £12.50 ULEZ fee. With an estimated 1.6 million PCNs issued, at a cost of £160 (or £80 for prompt payment), the RAC estimates TfL could receive anything between £130.9m and £261.9m in fine revenue.
RAC head of roads policy Nicholas Lyes said: “The expansion of the ULEZ has resulted in a much-increased revenue stream for Transport for London, notwithstanding the costs associated with introducing the larger ULEZ. Londoners living outside the current ULEZ will now be worrying about the prospect of further expansion, mooted to be at the end of August 2023.
“While we accept that action is needed to reduce toxic emissions from vehicles, the cost-of-living crisis is hurting drivers in the pocket and there is a risk that further enlarging the zone will be hugely costly for those with older vehicles who can least afford to change them for something newer.
“As it is, RAC research suggests drivers are holding on to their vehicles for longer, so there is a real risk that more people with non-compliant vehicles will be forced to pay a charge they can ill afford to.
“We would encourage the mayor to take a pragmatic approach and redouble his efforts to support lower-income families and businesses with non-compliant vehicles with a targeted scrappage scheme ahead of any expansion plans.”
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