London ULEZ has generated £875 million in revenue since 2019

An investigation by Peugeot has revealed the vast amount of money generated by London’s Ultra-Low Emission Zone (ULEZ).

Since the ULEZ began operation in April 2019, a total of £875 million in revenue has been raised by the scheme. 

In August 2023, Transport for London (TfL) expanded the area covered by the ULEZ, which now incorporates all 32 London boroughs. This brought an additional five million people into the ULEZ area of operation, making it the world’s largest clean air zone. 

Since the expansion a year ago, TfL has received £226 million in fees and penalty fine payments charged to the capital’s drivers.

Expanded horizons

Drivers of petrol vehicles that do not meet Euro 6 exhaust emissions standards, and diesel vehicles unable to meet the Euro 4 rules, are required to pay a daily fee of £12.50 to enter the ULEZ. 

Unlike the London Congestion Charge, the ULEZ operates 24 hours a day, with nine million residents now covered by it. By law, TfL must use all the surplus revenue generated by the ULEZ for investment into local public transport schemes. 

The success of London’s ULEZ has led to 12 more Clean Air Zones, Low Emissions Zones or Zero Emissions Zones being established across the UK.

Given the greater number of such zones in operation, Peugeot is offering a £900 discount to key workers on a new electric vehicle, allowing them to avoid daily, emissions-related charges.

Zoning in on revenue

By analysing data from a number of Freedom of Information Act requests, Peugeot has calculated that the UK’s Clean Air Zones have generated a total of £1.044 billion in revenue.

The research also identified the 10 Clean Air Zones that generate the most income in the UK. In descending order, these are:

1. London Ultra Low Emission Zone: £875 million
2. Birmingham Clean Air Zone: £125.27 million
3. Bradford Clean Air Zone: £16.76 million
4. Bath Clean Air Zone: £15.23 million
5. Tyneside Clean Air Zone: £4.77 million
6. Sheffield Clean Air Zone: £2.81 million
7. Oxford Zero Emissions Zone: £1.88 million
8. Portsmouth Clean Air Zone: £1.49 million
9. Glasgow Low Emission Zone: £1.20 million
10. Dundee Low Emission Zone: £43,320*

*Only started operation in May 2024