Low emission zones generate £1bn from fines and charges

Low emission zones in the UK have now generated more than £1 billion in fees and penalty charges since April 2019, new research suggests.

The huge sum was revealed in a series of Freedom of Information (FOI) requests sent to local authorities operating a low emission zone (LEZ), clean air zone (CAZ) or a zero-emission zone (ZEZ), by Peugeot.

Some 10 zones across the UK were found to have generated £1,044,381,971 from motorists since April 2019. Bristol City Council withheld data on the Bristol CAZ as it plans to publish this information before the end of the calendar year.

Since the expansion of London’s ultra-low emission zone almost a year ago, Transport for London (TfL) has accumulated more than £226 million in fees and fines.

The London ULEZ is now the largest clean air zone in the world, having been expanded to include all 32 boroughs of the city. 

There are currently 13 low emission zones, clean air zones or zero-emission zones across the UK, including the London ULEZ.

Nine of these zones charge non-compliant vehicles an entry fee, with penalty charge notices (PCNs) issued to drivers who fail to pay the daily charge.

The London ULEZ issued the majority of fees and fines, accounting for £875m of income generated between April 2019 (when the 24-hour ULEZ was first introduced) and June 2024.

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

From research conducted by Peugeot last year, the London ULEZ received more than £319m off drivers between October 2021, when the ULEZ was expanded to cover the area up to the North and South Circular roads, and March 2023, through fees and PCNs. 

Zones across the UK have different criteria for charging vehicle entry. 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. Whereas 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 option to pay an entry fee to the zone.

Enforcement of the Glasgow LEZ came into force in June 2023, with £1.2m generated through PCNs.

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. 

Eurig Druce, managing director, Peugeot UK, said: “As low emission zones continue to expand across the UK, it is clear that the future of urban mobility lies in cleaner, more sustainable transportation.

“To mark one year since the ULEZ expansion, we have also enhanced offers on our electric vehicles, including up to an additional £900 saving for key workers - helping drivers avoid costly ULEZ charges but also playing a vital role in reducing air pollution in our cities.”

Income generated by UK clean air initiatives

† † Time periods differ between different local authorities. Source: Peugeot UK

Other local authorities with clean air zones on non-conforming vehicles 

Source: Peugeot UK

Annual cost for motorists entering the zone in non-compliant vehicles on a daily basis

††† The Oxford Zero Emissions Zone 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. Source: Peugeot UK