Drivers fined £70m for not paying London’s ULEZ charge

Transport for London (TfL) collected £73.3 million in fines from drivers using London’s ultra-low emission zone (ULEZ), last year.

Drivers who fail to pay the £12.50 charge receive a penalty charge notice (PCN) of £180, although this figure is reduced to £90 if paid within a fortnight.

The figures, obtained through a freedom of information request, show that the ULEZ generated more than £224m in 2022 - an average of £18.7m per month - with £151.3m coming through daily charges.  

The ULEZ was introduced in April 2019 to cover central London before being expanded to the North/South Circular boundaries in October 2021.

It will be expanded across the whole of the capital from August 29. 

Earlier this year, TfL estimated that the expansion of London’s ULEZ would be worth up to £300m in its first year. However, it said that income from the pollution-cutting scheme is expected to be “negligible” by 2027.

TfL’s group finance director, Patrick Doig, told the London Assembly, its “central estimate” is for the ULEZ to generate an additional £200m in the 12 months after it is expanded to the Greater London boundary, from August 29 this year, with a “50% plus or minus” range from £100m to £300m.

TfL says that 95% of vehicles in the zone are expected to be compliant when the expanded ULEZ goes live, avoiding the £12.50-a-day charge, and compliance rates will increase incrementally each year thereafter.

To help fleets comply, a £110 million scrappage scheme has been opened up to more firms ahead of the ULEZ expansion. 

From the end of July, businesses registered in London with fewer than 50 employees will be able to apply.

Currently, charities, sole traders and businesses with 10 or fewer employees registered in London can apply to scrap a van (£5,000 grant) or a minibus (£7,000 grant), retrofit certain vans or minibuses (£5,000 grant) or scrap and replace a van or minibus with a fully electric vehicle (EV) (£7,500 or £9,500 grant respectively). 

As well as allowing bigger operators to apply, charities operating in London will also be able to scrap or retrofit up to three vans or minibuses instead of just one. 

Furthermore, there will be a new grace period for sole traders, microbusinesses, small businesses, and registered charities who have ordered brand-new compliant vehicles, or if they have booked an approved retrofit appointment for a non-compliant light van or minibus.