The Ultra Low Emission Zone (ULEZ) will expand to all London boroughs from 29 August 2023, covering a further five million residents.
Drivers in the expanded zone face a daily charge of £12.50 if they drive a vehicle that doesn't meet the emissions standards.
This includes residents of the ULEZ although vehicle owners don't need to pay the ULEZ charge if they are parked inside the zone and don't drive.
You can check whether the charge applies to you here. Generally for diesel cars and vans to avoid the charge they must generally have been registered in 2016 or more recently, while most petrol models registered from 2006 are exempt.
London mayor Sadiq Khan announced the move today, saying that in light of the cost of living crisis it was 'one of the toughest decisions I’ve taken'.
He also announced a £110m scrappage scheme to support Londoners switch to compliant vehicles.
From 30 January 2023, residents receiving certain disability and means-tested benefits can apply for the car and motorcycle scrappage scheme and receive a grant payment, or a grant payment plus one or two Annual Bus and Tram passes.
A separate van and minibus scrappage scheme will also be available for sole traders, micro-businesses and charities.
Existing ULEZ grace periods have been extended, and new grace periods will be introduced on 30 January 2023.
The ULEZ scheme operates at all times except Christmas Day and is currently limited to the area within the North and South Circular roads.
It estimates that an average of 160,000 cars and 42,000 vans a day would be liable for the £12.50 Ulez fee although this is expected to fall to 46,000 and 26,000 respectively.
TfL modelling, based on experience with the earlier schemes, suggests that expanding the ULEZ London-wide in August 2023 will:
- lead to a reduction of nearly 10% of NOx emissions from cars in outer London on top of the 30% reduction in road transport NOx emissions expected from the current ULEZ and tighter Low Emission Zone standards
- reduce PM2.5 exhaust emissions from cars in outer London by nearly 16% leading to a 1.5% overall reduction in PM2.5 emissions London-wide
- overall the London-wide ULEZ is expected to lead to 146,000 fewer car trips (nearly 2% reduction), with direct reductions in greenhouse gas emissions as well as other pollutants.
The last expansion of the ULEZ in late 2021 saw TfL raise income by almost £100m according to RAC analysis.
Head of roads policy Nicholas Lyes told newspapers the latest announcement will be 'a hammer-blow for desperate drivers and businesses already struggling with crippling fuel costs'.
