ULEZ expands across Greater London

Motorists travelling in and out of London have been faced with the news that the Ultra Low Emission Zone (ULEZ) is expanding. In a move set to affect thousands more drivers every year, London Mayor Sadiq Khan made the announcement on the 25th November 2022 which has since received a mixed reaction. 

In this article all about ULEZ, here at Octane Finance, we explain what motivated the decision to expand the zone, when the ULEZ expansion will come into effect, and where exactly the expanded zone will stretch. Read on to find out more… 

What is the Ultra Low Emission Zone?

Originally introduced to London in April 2019, the Ultra Low Emission Zone (or ULEZ for short) is a scheme designed to reduce the pollution levels caused by vehicles travelling within the capital.

In what was a world first, the ULEZ operates 24-hours a day during 364 days of the year (apart from Christmas Day) in a bid to penalise drivers of vehicles which aren’t compliant with strict Euro standards. 

The Ultra Low Emission Zone originally covered central London only, but was increased in October 2021 to 18 times the size and now reaches areas within Greater London’s North and South circular roads.

When will the Ultra Low Emission Zone expand?

The current Ultra Low Emission Zone will expand on Tuesday 29th August 2023 as announced on the Transport for London (TfL) website.  

Where will the Ultra Low Emission Zone expand to?

The new Ultra Low Emission Zone is set to expand across the whole of Greater London in 2023 which means that in some places, it will border parts of the M25. The map below gives you a better idea of just how big the new zone will be:

The scale of the expansion is vast and covers all 33 boroughs in Greater London. As of 29th August 2023 you can expect the following areas to be controlled Ultra Low Emission Zones:

• Barking & Dagenham
• Barnet
• Bexley
• Brent
• Bromley
• Camden
• City of London
• City of Westminster
• Croydon
• Ealing
• Enfield
• Greenwich
• Hackney
• Hammersmith & Fulham
• Haringey
• Harrow
• Havering
• Hillingdon
• Hounslow
• Islington
• Kensington & Chelsea
• Kingston Upon Thames
• Lambeth
• Lewisham
• Merton
• Newham
• Redbridge
• Richmond Upon Thames
• Southwark
• Sutton
• Tower Hamlets
• Waltham Forest
• Wandsworth

Why is the Ultra Low Emission Zone being expanded?

Harmful levels of pollutants in London’s air are causing a major health crisis in the city, leading to hospital admissions, long-term illnesses and even premature death. The Mayor of London Sadiq Khan is determined to do everything he can to ensure people living and working within London are protected from unsafe levels of pollutants in the city’s air. 

Launching what’s being called the ‘Let’s Clear the Air’ campaign, Khan made an official announcement about the expanded Ultra Low Emission Zone on his Twitter page, stating: “Cleaner air is coming to outer London. Today I’m announcing that we’re expanding the #ULEZ London-wide in a move that will bring cleaner air to *5 million* more Londoners.” 

What makes a vehicle ULEZ compliant?

For vehicles to enter the Ultra Low Emission Zone without charge, they must be compliant with strict standards. These Euro emission standards are:

• Euro 3 standards for motorcycles, mopeds, motorised tricycles and quadricycles (L category)
• Euro 4 standards (NOx) for petrol cars, vans, minibuses and other specialist vehicles
• Euro 6 standards (NOx and PM) for diesel cars, vans and minibuses and other specialist vehicles

In addition to the Euro standards listed above, there are some other exceptions too:

• Fully electric zero emission vehicles
• Lorries, vans and specialist heavy vehicles weighing over 3.5 tonnes
• Buses, minibuses and coaches weighing over 5 tonnes

To confirm if your vehicle is compliant with the Ultra Low Emission Zone, you can check your vehicle on the Transport for London website to find out if you need to pay the daily charge.   

What vehicles aren’t compliant with ULEZ?

Any vehicle wishing to enter the Ultra Low Emission Zone without charge must meet the Euro standards which are set to control pollutants from the engine. Vehicles that are unlikely to meet the Euro standards and therefore aren’t compliant with the ULEZ are:

• Motorcycles registered before 2007
• Diesel cars and vans registered before 2016
• Petrol cars and vans registered before 2006

What are the Ultra Low Emission Zone charges?

If you drive within the Ultra Low Emission Zone in a vehicle that isn’t compliant with the Euro standards, then you will be expected to pay a fee. The charge is £12.50 per day and is payable no matter how far into the zone you travel, or for how long.

The entire ULEZ area is monitored by a vast network of automatic number plate recognition (ANPR) cameras to ensure that non-compliant vehicles are charged the daily rate. Drivers who fail to pay the £12.50 charge within the given time frame (by midnight on the third day following the journey) will be issued with a penalty charge notice (PCN). 

The fine for not paying the ULEZ fee on time is £160 which is reduced by 50% to £80 if it is paid within 14-days of receipt.  

How do you pay the Ultra Low Emission Zone charges?

The £12.50 daily ULEZ charge can be paid online via the Transport for London website on the Pay to drive in London page (this is where the Congestion Charge and LEZ - Low Emission Zone - payments can also be made too).

If you’re a regular commuter to London, then you can set up an Auto Pay account so that you are billed automatically for travel within the Ultra Low Emission Zone. You can also download the TfL Pay to drive in London app so you can manage and make payments from your phone.

Is there a ULEZ scrappage scheme?

As of 30th January 2023, a ULEZ scrappage scheme has been introduced to help qualifying Londoners upgrade to a emissions standard compliant vehicle. Sole traders, micro business owners and registered charities can apply for a grant of up to £2,000 for a car or £9,500 for a van if they meet the necessary criteria. 

Motorists on certain low income and disability benefits can apply - the scheme includes options to scrap or retrofit a vehicle, plus the opportunity to apply for annual public transport passes too. Here’s how much you could receive for your current non-compliant ULEZ vehicle:

• Cars - apply for a grant of up to £2,000 per vehicle
• Motorcycles - apply for a grant of up to £1,000 per vehicle
• Wheelchair Accessible Vehicles (WAVs) - apply for a grant of up to £5,000 per vehicle
• Vans and Minibuses - apply for a grant of between £5,000 to £9,500 per vehicle

To find out more about how you can benefit, take a look at our London ULEZ scrappage scheme 2023 blog for details of how to apply and what other ULEZ-based discount schemes you could be eligible for.

Is the Ultra Low Emission Zone being opposed?

As with any decision of this gravity, not everyone is on side with the decision to expand ULEZ across the whole of Greater London. The sheer amount of people who are set to be affected by these changes naturally means it is bound to face opposition.

Interestingly, a public consultation on the topic found that 80% of people who lived and worked in the affected areas of London were opposed to the expansion of the zone. This means that a mere 20% of people were in favour of the ULEZ. 

London council leaders have their say on ULEZ 

Council leaders representing some of the boroughs due to be included in the ULEZ expansion have voiced their concerns and frustrations at how the changes will negatively affect constituents in their areas… 

In a joint statement from Hillingdon, Harrow, Bexley and Croydon about the ULEZ expansion which is published on the Hillingdon London website, Hillingdon Council Leader, Cllr Ian Edwards, said: “Hillingdon remains vehemently opposed to these half-baked (ULEZ) plans and we will do everything in our power to stop it from going ahead.

"London cannot be treated with a one-size-fits-all approach when the make-up of inner boroughs is incredibly different to ours. 

"Unlike urban parts of the capital, our residents don't have the luxury of a frequent, multi-layered transport system. Many have little option other than to use their cars for everyday travel. Imposing the ULEZ charge is not only wrongheaded but is completely unfair and will hit the poorest in our communities hardest. What Hillingdon really needs is not another tax but increased investment in its public transport links. 

"There are better ways of improving our air quality and the Mayor of London should be doing all he can to boost London's recovery rather than implementing this money grab from those that can least afford it.”

Adding to the frustration felt by the outer boroughs of London, Harrow Council Leader, Cllr Paul Osborn, said: “This is an outrageous announcement. Mayor Khan has ignored London's residents and businesses and pushed ahead with his vanity project. This is the wrong solution at the wrong time. There is no evidence that it will improve air quality but it will hit the poorest households most.  

"This scheme will involve placing hundreds of cameras in Harrow and thousands across London, costing hundreds of millions of pounds. 

"Harrow residents were overwhelmingly against this idea. We will join with other councils across London to make sure our residents' wishes are listened to and acted upon.”

Poor transport links, cost of living crisis, and the investment needed to implement the Ultra Low Emission Zone across Greater London seems to be the biggest bugbear for councillors opposed to the decision. 

Bexley Leader, Cllr Baroness O'Neill, said: "We are an outer London borough with poor transport connections, which means that many people are reliant on their cars, including many who travel into the borough from outside London.  

"The ULEZ charge will impact disproportionately on those on lower incomes, which includes many key workers, and we are very concerned about the impact it will have on them, on essential services and local businesses." 

Highlighting the impact that could be felt by businesses in Croydon, the borough’s Executive Mayor, Jason Perry, said: "I am deeply concerned by Sadiq Khan's plans to dramatically extend the Ultra Low Emission Zone in August 2023.

"The ULEZ expansion would be a hammer blow to businesses and residents in Croydon, particularly given that it comes on top of the Mayor of London's decision to increase his share of council tax by a record 8.8% this year - that's almost £400 extra a year for the average Croydon household.

"While we must improve London's air quality, that work should not come at the cost of hitting families and businesses already struggling to make ends meet. Unless the Mayor of London scraps his ULEZ extension there is a risk that people with cars which fall short of the ULEZ standards will be left unable to get around without paying the extortionate £12.50 a day charge. That is deeply unfair. City Hall should be investing to support people to take positive steps to improve our environment, for example further incentivising greener vehicles.”

London Mayor Sadiq Khan responds to the ULEZ backlash

In response to the comments made by the four opposition council leaders, London Mayor Sadiq Khan expressed that he had given great thought to the cost of living implications and that it hadn’t been an easy decision for him to expand the ULEZ on 29th August 2023. He added “in the end, public health comes before political expediency.”

It’s probably no surprise that the Labour Mayor is facing backlash from Tory councillors in what’s being described by the media reporting on the fall-out as a ‘stand-off’ between Mr Khan and representatives of outer London boroughs. We’ll be keeping an eye on the developments over the coming weeks and months, so watch this space for the latest updates on the matter.

Now the NFDA stand firmly against the ULEZ expansion

It’s not just political figures that have made a stand against the planned expansion of the Ultra Low Emission Zone, influencers in the automotive industry have had their say too… 

Sue Robinson, Chief Executive of the National Franchised Dealers Association (NFDA) has condemned the impact that the ULEZ expansion will have on low income families, adding that the timeline in which the zone will expand across Greater London is far too short. 

She said: “By increasing the Ultra Low Emission Zone to the entirety of London, it is forcing the residents to make a decision before they are ready. During a period of unprecedented financial struggle and in the midst of a cost of living crisis, families of low income may not be ready to make a transition to a newer vehicle even with the scrappage scheme.

“NFDA remains firmly against the decision to extend the ULEZ, or at least the timescale of enforcement is far too soon. Without the availability of government incentives and the commitment for more investment towards EV infrastructure to adequately prepare London for a complete transfer to EV adoption, this restriction to older ICE and diesel vehicles should not be implemented.”

However, Ms Robinson fully supports the ULEZ inspired scrappage scheme to help London motorists upgrade to a compliant low or zero emissions vehicle. She adds: “Whilst the NFDA supports and is encouraged by the London Mayor’s decision to provide a financial incentive towards exchanging ageing and non-compliant vehicles for newer, greener modes of transport, we are severely concerned that this will not be enough and the scheme will continue to have negative implications for a large proportion of motorists.”

Auto Trader expresses concerns about lack of affordable vehicles

Even the automotive marketplace, Auto Trader, has had its say on the matter and reported there is a shortage of affordable cars that meet ULEZ standards. In fact, data shows that just over 5,000 used cars on the market in February 2023 that cost £5,000 or less actually meet the scheme’s requirements. 

Erin Baker, Editorial Director at Auto Trader, said: “When the average price of a used car is £18,000, a £2,000 scrappage scheme is a drop in the ocean for low-income drivers in outer London who want to avoid ULEZ payments.”

Adding to the points made by Auto Trader, Nicholas Lyes who is Head of Roads Policy at RAC, commented: “While cleaning up London’s air is unquestionably the right thing to do, the ULEZ expansion comes at a time when many households are struggling with high bills in the cost-of-living crisis and simply can’t afford to switch to a compliant vehicle, especially in what is currently a very expensive second-hand market.

“The Mayor of London should consider a more generous scrappage scheme or a means-tested TfL (Transport for London) backed discounted leasing scheme for those who need to use their vehicles daily.”       

How to make a complaint against the Ultra Low Emission Zone

Transport for London (TfL) offers an online ULEZ complaints service for customers who are unhappy or have a suggestion about how the scheme can be improved. Complaints will be dealt with by a customer service team, but anyone who wishes to comment also has the right to make a formal complaint. 

Is the Ultra Low Emission Zone being reconsidered?

As reported by national media on 23rd January 2023, the Prime Minister Rishi Sunak has made comments regarding his own views on the expansion of ULEZ. During Prime Minister’s Questions in the House of Common, the issue was raised by MP David Simmons who represents the areas of Ruislip, Northwood and Pinner.

Mr Simmons expressed great concern for the old and disabled constituents in his district that are very much car-dependent. He feels it’s unfair a £12.50 be imposed on less-able individuals every time they require hospital care or to attend an appointment. The MP calls for the ULEZ expansion scheme to be halted until the issues concerning those affected are addressed. 

In a surprise reaction from the PM regarding his views on ULEZ, Mr Sunak seemingly pledged his support for MP David Simmons in this statement: “...It is disappointing that the Mayor, backed by the Leader of the Opposition, is choosing not to listen to the public and expanding the zone against the overwhelming views of residents and businesses. I urge the Mayor to reconsider properly and to respond to those serious concerns.”

As for the impact of these comments and where it leaves London Mayor Sadiq Khan, we’re not yet sure of the implications. But, this will indeed open up the debate as to whether the ULEZ expansion should and will be reconsidered. We will of course keep you updated. 

How will the Ultra Low Emission Zone affect businesses?

The population of London is estimated to be at over 10.5 million people in January 2023, so not only are many thousands of individuals who drive set to be affected by the expansion of ULEZ on 29th August 2023, but thousands of businesses across the capital too. 

It’s predicted that sole traders will bear a big brunt of the changes when the Ultra Low Emission Zone stretches to the M25 boundary. This is because there is a huge number of non-compliant vans driven by motorists who currently operate in the area of London set to be expanded. In fact, a report commissioned by Transport for London (TfL) has estimated that at least 30,000 non-compliant commercial vehicles are driven to and from London every day. 

To add further concern to the bubbling issue, Auto Trader - the UK’s number one platform to buy and sell new and used cars and vans - has reported that just over 5,000 vans are currently for sale on their marketplace in the immediate area of London and South-East England. When counting their commercial vehicle stock across the whole of the UK, this stands at just under 24,000.

While we appreciate there are of course other places from where to source a new or used van, the lack of available vans for motorists to purchase in time to meet the ULEZ expansion deadline is certainly a worry. Let’s not overlook the financial concerns for many business owners too.                

Finance a ULEZ compliant vehicle

Is it time you upgraded your current vehicle to a ULEZ compliant one? Whether a new car, van or motorbike is on the cards, we can help. As an experienced finance broker working exclusively within the automotive sector, we can pair you with the perfect lender. 

Why not see how much your monthly vehicle finance payments could be by using our free online finance calculator and get one step closer to being ULEZ compliant.