Expansion of the ULEZ on 29 August 2023

09 August 2023

As most HGV and PSV operators providing services in London will be aware, the Ultra-Low Emission Zone (ULEZ) has been in force since 8 April 2019, covering areas of Central London, before widening out to the North and South Circular roads in 2021.  As from 29 August 2023, the ULEZ will be expanding across all London Boroughs.

What is the ULEZ?

The ULEZ operates 24 hours a day, 7 days a week, every day of the year (except 25 December). It imposes a charge for vehicles that do not meet the required emissions standards.  Lorries, vans and specialist heavy vehicles (all over 3.5 tonnes GVW) and buses, minibuses and coaches (all over 5 tonnes GVW) do not need to pay the ULEZ charge but they will need to pay the LEZ charge for driving in the ULEZ areas if they do not meet the LEZ emissions standard.

This means that in order to avoid a charge for driving in the ULEZ areas, HGVs and PSVs will need to meet the Euro VI standard for NOx and PM.

What about the LEZ and the Congestion Charge?

The ULEZ covers all vehicles driven within the central London area.

The LEZ is separate and covers larger vans, minibuses, lorries, buses and coaches as well as other specialist vehicles driven within most of Greater London.

The Congestion Charge is a daily charge for driving a vehicle within the charging zone.

Why was the ULEZ introduced?

The aim of the ULEZ is to reduce nitrogen oxide and particulate matter emissions, which come from transport. Those pollutants have been blamed for causing thousands of premature deaths and stunting the growth of children’s lungs. The aim is therefore that people will be healthier and this in turn reduces the burden on the NHS. TfL also considers that the ULEZ will encourage more walking, cycling, use of public transport and sustainable freight deliveries.

TfL have said that the expansion on 29 August 2023 is necessary to tackle air pollution, congestion and the climate emergency.

The Expansion of the ULEZ

The expansion of the ULEZ to all London Boroughs has attracted some criticism. Clean air campaigners support it as the existing ULEZ has reduced the number of polluting vehicles entering the area and now 97% meet the emissions standards. Within that area it is estimated that NOx emissions have fallen by 26% since 2019 with PM emissions falling by 19% over the same period.

However, some residents, businesses and politicians are concerned about the financial impact of the extension of the ULEZ during the cost of living crisis and when the cost of second-hand ULEZ-compliant cars has also risen.

There have been public protests and five of the London Borough Councils, Bexley, Bromley, Harrow, Hillingdon and Surrey, launched a legal action over the decision to expand the ULEZ.  The Councils were granted permission by the Court to challenge the legality of the ULEZ expansion by way of Judicial Review (JR). The Councils argued that the plans were irrational due, in part, to fact that around 55% of people surveyed had a non-compliant vehicle but over 90% would not qualify for TfL’s scrappage scheme. It is though that the expansion of the scheme will have the biggest negative impact on low-income earners, vulnerable people, ordinary workers and small businesses and it may ultimately result in the loss of business or employment.

On 28 July 2023, the High Court dismissed the Councils’ arguments and ruled that the expansion of the ULEZ was not unlawful. This means that the expansion will go ahead as planned on 29 August 2023. Representatives of the Councils have stated that they will continue with the battle against the expansion of the ULEZ on behalf of their residents who are likely to be significantly affected.

What are the charges for driving in the ULEZ/LEZ?

The daily charge is:

• £100 for vans or specialist diesel vehicles (over 1.205 tonnes unladen weight up to 3.5 tonnes GVW) or minibuses (up to 5 tonnes) which do not meet Euro 3 standards.
• £100 for HGVs, lorries, vans and specialist heavy vehicles over 3.5 tonnes as well as buses/minibuses and coaches over 5 tonnes which do not meet Euro VI (NOx and PM) standards, but meet Euro IV (PM)
• £300 for HGVs, lorries, vans and specialist heavy vehicles over 3.5 tonnes as well as buses/minibuses and coaches over 5 tonnes which do not meet Euro IV (PM)

The charges will need to be paid begore midnight od the third charging day following the journey. Operators can also register for Auto Pay with TfL so that the charges will be automatically applied if the vehicle is driven within he LEZ/ULEZ.

What are the Penalties for Failing to Comply?

Operators can be issued with a Penalty charge Notice (PCN) if:

• The vehicle does not meet LEZ emissions standards and the vehicle is not exempt or registered for a 100% discount
• The relevant charge isn’t paid by midnight on the third day after travel
• The vehicle has not been registered with TfL
• The operator has provided an incorrect number plate or incorrect date of travel when paying the charge
• The operator paid by post but did not allow at least 10 days before the date of travel for the payment to clear.

Operators will receive separate PCNs for each charging day that they drive within the ULEZ/LEZ. The charging hours are from midnight to midnight so if the vehicle is driven through the zone between 11.30pm and 12.30am, these are two separate days and two charges will be applicable.

If a HGV or PSV that meets Euro IV standards (PM) but does not meet Euro VI standards (NOx and PM) is driven in the ULEZ or LEZ, the operator will receive a penalty charge of £1000 (£500 if paid within 14 days). For vehicles not meeting Euro IV standards, the penalty charge is £2000 (£1000 if paid within 14 days)

Exemptions and Discounts

A small number of vehicles are automatically entitled to an exemption from the LEZ. These Are: specialist vehicles designed and built for mainly off-road use, but which may use the road for limited purposes (including agricultural and forestry tractors, mowing machines, agricultural and farm machinery and equipment, mobile cranes and road and building construction machinery); vehicles built before 1 January 1973 or with historic tax class; and vehicles operated by the Ministry of Defence.

Some showman’s vehicles will be eligible for a 100% discount. These will need to be registered with TfL to qualify.

Retrofitting vehicles

Some vehicles which are not already compliant with Euro VI standards can be retrofitted so that they no longer attract a charge for driving in the LEZ and ULEZ. Any retrofit technologies that are fitted will need to be certified by the government’s Clean Vehicle Retrofit Accreditation Scheme (CVRAS). Once certified, the operator must ensure that they notify TfL directly so that the ULEZ/LEZ charges are no longer applied.

Direct Vision Standard and HGV Safety Permit

Operators must also remember that if they operate HGVs over 12 tonnes GVW in Greater London at any time they will need an HGV Safety Permit to show that the vehicle meets the Direct Vision Standard (DVS). Vehicles without a permit will be subject to a penalty charge notice. Applying for a permit is free.

Please contact the dispute resolution team here if you require any advice.