More than £300m in fines may have been raised by Transport for London (TfL) after it reportedly issued more than 1.7 million penalty charge notices (PCNs) within the first six months of operation of the expanded Ultra Low Emission Zone (ULEZ).
The number of PCNs issued by TfL was referenced in the Greater London Authority’s (GLA’s) six-month report on the operation of the UK capital’s emission-based road-user charging scheme, released today.
To calculate the approximate amount of money raised through 1.7 million PCNs, if all fines were paid at the maximum penalty charge of £180, the total would be £306m.
If all fines were paid within 14 days at the reduced penalty charge of £90, the total would be £153m.
Therefore, City Transport & Traffic Innovation Magazine has estimated that the potential total revenue raised from the penalty charges could be between £153m and £306m, depending on how many were paid within the reduced period.
READ MORE: London ULEZ generated more than £220m in 2022, figures reveal
According to TfL, revenue raised from ULEZ penalty charges is redirected into further environmental and public health initiatives across the city.
This includes supporting sustainable transport projects, improving air quality measures, and funding schemes such as the scrappage scheme to help individuals and businesses transition to ULEZ-compliant vehicles.
However, last month the BBC reported that only 2% of vans scrapped under the ULEZ scrappage scheme have so far been switched to electric vehicles (EVs) despite TfL reportedly committing more than £100m in funding to businesses.
Of the 16,207 applications to scrap a petrol or diesel van approved between January 2023 to May 2024, some 374 were replaced by an EV, BBC analysis of TfL’s figures showed.
What’s more, polling, commissioned by campaign group Clean Cities, revealed that 67% of Londoners believe small businesses still need more support to help them switch to EVs.
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The survey of 4,000 UK adults also found that three-in-five (59%) Londoners want their councils to take stronger action against air pollution and protect the environment. Nearly half (46%) also believe delivery vehicles have a negative impact on their local roads.
Clean Cities has called on Khan to improve incentives for businesses to switch to EVs, such as reviewing and reprioritising the ULEZ scrappage fund and extending the Congestion Charge Cleaner Vehicle Discount for SMEs, ride-hailing and car-sharing services until late 2027.
The discount is reportedly set to be discontinued at the end of 2025, which, according to Clean Cities, means it will cost businesses the same to drive a diesel or EV in central London.
Oliver Lord, UK Head of Clean Cities, said, “The mayor’s van scrappage scheme is a leading endeavour but something isn’t right if only 2%of businesses in London have ditched diesel and switched to electric instead.
“Londoners rightly expect businesses to step up and play their part in cleaning the air and protecting the environment but more support is needed to make cleaner electric vans a viable option.”
However, the GLA’s report claims that the ULEZ, which was expanded to all London boroughs on 29 August 2023, reached a 96.2% vehicle compliance rate in February 2024 – up from 91.6% in June 2023 and 39% in February 2017 – thereby significantly reducing harmful emissions and improving air quality in London.
The report highlights that nitrogen oxides (NOx) emissions from cars and vans in outer London have decreased by 13% and 7% respectively, resulting in a total reduction of 424 tonnes of NOx. Particulate matter (PM2.5) exhaust emissions from cars and vans are 20% lower compared to scenarios without the ULEZ expansion.
According to the GLA, the reductions have led to notable improvements in air quality, with roadside nitrogen dioxide (NO2) concentrations in outer London dropping by up to 4.4%.
The report estimates that harmful roadside NO2 concentrations are now 21% lower in outer London, 53% lower in central London, and 24% lower in inner London compared to what they would have been without the ULEZ.
READ MORE: Motorists willing to switch cars for motorcycles amid ULEZ costs, report claims
Hirra Khan Adeogun, co-director of climate charity Possible, said: “The ULEZ expansion has been so successful in cutting down air pollution in outer London that the reduction in nitrogen oxide is as if we had removed an incredible 200,000 cars from the roads for a year.
“Without bold policies like the ULEZ, it would have taken nearly two centuries for London to meet legal air pollution limits; we’re now on track to hit this milestone by 2025.
“Most Londoners support ULEZ and it is clear that the policy has done what it set out to do. It’s a win-win for clean air and for the climate. Cities around the world and across the UK should be looking at the example set in our capital.”
Digging deeper in compliance, the report states that car compliance reached 97.1%, and van compliance improved to 88.9%. Additionally, the number of non-compliant vehicles detected daily has decreased dramatically, with 90,000 fewer such vehicles seen in February 2024 compared to June 2023, marking a 53% reduction.
The report suggests that the high compliance rates for cars and vans is a result of more Londoners opting for cleaner vehicles.
Responding to the publication of the GLA report, Silviya Barrett, director of policy and research at Campaign for Better Transport, said: “This report shows that the ULEZ extension is working, creating cleaner air for Londoners to breathe.
“To further improve the capital’s air quality, and reduce congestion, we now need to see fewer vehicles on the roads with ongoing investment in public transport and walking and cycling to help reduce the need to drive.
“We also urge the mayor to look at replacing the ULEZ, congestion charge and road tolls with a single pay-as-you-drive scheme, which would be fairer and simpler for London’s motorists.”
Learn more about the key trends and challenges affecting senior decision-makers responsible for user-financed transportation – including tolling, pricing and road-usage charging – across the world at Akabo Media’s global series of Road User Charging Conferences in Singapore (October 2024), Brussels (March 2025), Miami (May 2025) and Abu Dhabi (June 2025). Click here for more information!
