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London ULEZ Expansion Generates £226 Million in a Year

Posted on August 23, 2024

As the UK’s Low Emission Zones (LEZs) continue to grow, new data reveals they have collectively generated over £1 billion in fees and fines since 2019.

The London Ultra Low Emission Zone (ULEZ), which expanded to cover all 32 boroughs of the city last year, has been particularly lucrative, accumulating more than £226 million in fees and fines since its expansion. This makes it the largest clean air zone in the world.

PEUGEOT UK, which recently launched its new E-3008 and E-5008 electric SUVs, commissioned research to assess the financial impact of LEZs across the UK. The data shows that 10 zones have generated a total of £1,044,381,971 in income from motorists since April 2019.

The London ULEZ has been the most significant contributor to this figure, accounting for £875 million of the total income generated. By law, all net revenue from the ULEZ must be reinvested back into London’s transport network.

To celebrate the anniversary of the ULEZ expansion, PEUGEOT is offering enhanced deals on its electric vehicles, including up to an additional £900 saving for key workers.

While LEZs have been effective in improving air quality, they have also led to increased costs for motorists driving older, non-compliant vehicles. Some LEZs charge an entry fee, while others impose a ban on non-compliant vehicles.

As LEZs continue to expand and become more stringent, the demand for electric vehicles is expected to grow. Automakers are investing heavily in electric vehicle technology to meet this demand and contribute to a cleaner and more sustainable future.

Income generated by UK clean air initiatives
Local Authority / Zone Time Period †† Income per Time Period (fees & PCNs)
Bath Clean Air Zone 15/03/2021 – 30/06/2024 £15,233,761
Birmingham Clean Air Zone 14/06/2021 – 30/06/2024 £125,270,609
Dundee Low Emission Zone 30/05/2024 – 30/06/2024 £43,320
Glasgow Low Emission Zone 01/06/2023 – 30/06/2024 £1,200,815
London Ultra Low Emission Zone 08/04/2019 – 30/06/2024 £875,000,000
Oxford Zero Emissions Zone 28/02/2022 – 30/06/2024 £1,884,907
Bradford Clean Air Zone 26/09/2022 – 30/06/2024 £16,762,799
Portsmouth Clean Air Zone 29/11/2021 – 30/06/2024 £1,497,588
Sheffield Clean Air Zone 27/02/2023 – 30/06/2024 £2,811,650
Tyneside Clean Air Zone 30/01/2023 – 30/06/2024 £4,676,522
Total Income Generated  £1,044,381,971

 

Other local authorities with Clean Air Zones on non-conforming vehicles 
Aberdeen Enforcement commenced 1 June 2024 (data not yet available)
Edinburgh Enforcement commenced 1 June 2024 (data not yet available)

 

Annual cost for motorists entering the zone in non-compliant vehicles on a daily basis
UK City Daily fee for private cars Daily fee for private vans Estimated annual cost (Car) if using daily Estimated annual cost (Van) if using daily
Bath £0 £9 £0 £3,285
Birmingham £8 £8 £2,920 £2,920
Bradford £0 £9 £0 £3,285
Oxford††† £10 £10 £3,650 £3,650
Portsmouth £0 £0 £0 £0
London £12.50 £12.50 £4,562.50 £4,562.50
Bristol £9 £9 £3,285 £3,285
Sheffield £0 £10 £0 £3,650
Newcastle & Gateshead £0 £12.50 £0 £4,562.50

PEUGEOT issued a Freedom of Information request to the ten councils/local authorities which charge motorists to enter a designated Clean Air Zone/Low Emissions Zone, requesting them to outline the amount of income generated in fees and PCNs from motorists entering the zone.

† † Time periods differ between different local authorities

† †† 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.

Author

  • Henry Benz Profile Picture
    Henry Benz

    Henry Benz isn't your average automotive journalist. He's not obsessed with horsepower or zero-to-sixty times. His passion lies in the quiet hum of electric motors, the surge of instant torque, and the thrill of a world hurtling towards a sustainable future. Henry is the EV evangelist, your plug-in pal, and the guy who will make you fall in love with the world of electric vehicles, one test drive at a time.

    Henry's journey began in the golden age of muscle cars. He spent his youth wrenching on classic V8s, his nose forever stained with grease and his ears ringing with the roar of internal combustion. But as the climate crisis loomed larger, a seed of doubt sprouted in his gearhead heart. Could there be a way to enjoy the thrill of the open road without sacrificing the planet?

    That's when Henry discovered the world of EVs. He was captivated by the silent power, the instant acceleration, and the sleek, futuristic designs. He devoured every article, watched every documentary, and hopped behind the wheel of every electric car he could find. He was hooked.

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