UK clean air and low emission zones net local authorities £418m

The UK’s clean air and low emission zones have generated more than £418 million since March 2021, with Bradford receiving almost £7m in just nine months.

The new research, from Peugeot UK, reveals that London’s ultra-low emission zone (ULEZ) issued the majority of fees and fines.

It accounted for £319,822,943, which was generated between October 2021, when the ULEZ was expanded to cover the area up to the North and South Circular roads, and April 2023.

By law, all net revenue generated by the ULEZ must be reinvested back into London’s transport network.

London’s ULEZ currently covers an area between the North and South Circular roads but is due to be expanded across the entire capital from Tuesday (August 29).

Drivers of affected vehicles who do not pay the £12.50 daily charge will face a fine of up to £160.

To comply with the ULEZ, petrol cars and vans must be Euro 4 and diesel cars and vans must be Euro 6. Motorcycles and mopeds must be Euro 3 to comply.

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

Transport for London (TfL) announced that the scrappage scheme had been expanded, with all Londoners now eligible and payments to van fleets increased, earlier this month. 

The scrappage payment for vans was increased from £5,000 to £7,000, while grants to replace a non-compliant van with an electric van will increase from £7,500 to £9,500.

Small businesses and sole traders are able to scrap three vans or minibuses.

In addition, payments to fleets retrofitting vehicles increased from £5,000 to £6,000.

Additional support is also available to charities, with payments available for minibuses increased from £7,000 to £9,000, while disabled Londoners saw wheelchair adapted vehicle grants double from £5,000 to £10,000. 

Since the changes were introduced, TfL said that 204 small businesses have had their applications approved and £1.45m has been committed. 

To help buyers looking to switch to a ULEZ-compliant vehicle, Peugeot has introduced a new ‘e-grant’ offering customers a £3,000 saving on the all-electric e-208 and E-2008, combined with the scrappage scheme, this offers customers potential savings of up to £5,000 on a new electric Peugeot.

Nine charging zones

The UK currently has 13 low emission zones (LEZs), clean air zones (CAZs) or zero emission zones (ZEZs), including the London ULEZ.

At the moment, nine zones/areas charge non-compliant vehicles an entry fee, with Penalty Charge Notices (PCNs) issued to drivers who fail to pay the daily charge.

Peugeot’s research, based on Freedom of Information requests, found eight zones have generated £418,501,974 in income from motorists since March 2021. Bristol City Council withheld data on its CAZ as it intends to publish this information before the end of the calendar year.

Most zones have different charging criteria. For example, London’s ULEZ requires all diesel cars and vans to meet the latest Euro 6 emissions standards, and petrol models to meet Euro 4 standards.

Private cars entering the Bath CAZ are currently exempt from a charge, while vans, HGVs and private hire vehicles not meeting the required standards are subject to charges.

In Scotland, LEZs in Glasgow, Aberdeen, Dundee and Edinburgh place a ban on vehicles that do not meet the emissions requirements, with no ability to pay a fee to enter the zone.

Oxford introduced the UK’s first ZEZ last year, requiring non-zero-emissions vehicles to pay a daily entry fee when operating in the zone.

From its inception up to April 30 2023, the ZEZ in Oxford has generated £779,306 from motorists.  

The Transport Act 2000 requires local authorities in England to re-invest any surplus revenue from CAZs (above operational costs) into the delivery of local transport policies.

Birmingham City Council says it has invested over £52m of net surplus revenues from its CAZ to fund a hydrogen bus trial, upgrade train stations and improve cycling infrastructure.

Meanwhile, surplus revenue from Bristol’s CAZ is used to provide grants and loans to people and businesses that need to replace vehicles which don't meet the zone's emission standards.

Adam Wood, managing director of Peugeot UK, said: “Local authorities are turning their focus to improving urban air quality with 13 clean air zones now in place across the UK.

“To help drivers avoid charges and reduce emissions in our urban centres, Peugeot has introduced a new e-Grant, offering customers a £3,000 saving on the new, all-electric e-208 and E-2008.”

* The Oxford ZEZ charges a fee depending on the emissions level of the vehicle, with a current maximum fee of £10 for cars that fail to meet Euro 4 (petrol) and Euro 6 (diesel) standards.