Nightmare on ULEZ street

As the chilly winds of winter set in there’s a spectre haunting the UK’s major roads: low emissions zones. Drivers in these regions would be forgiven for thinking the scheme is a nightmare. While such initiatives aim to reduce pollution by deterring the most polluting vehicles from entering city centres, their implementation has been met with mixed reactions.

In England and Wales, CAZ are spearheaded by local councils, reflecting regional priorities rather than a uniform national policy. Scotland, however, has taken a different approach. In cities like Glasgow, Edinburgh, Aberdeen, and Dundee, LEZs are enforced by Transport Scotland, giving them a broader scope and authority. Despite the differences in who enforces these zones, one thing remains consistent: they are controversial.

Dividing the capital

London’s ULEZ, the first of its kind, was introduced in February 2008 under then-Mayor Ken Livingstone. While many associate ULEZ with current Mayor Sadiq Khan, it was actually during Boris Johnson’s tenure as mayor that the concept was proposed and confirmed.

Originally set to take effect in Central London in September 2020, Khan brought the timeline forward, launching ULEZ in April 2019. Since then, he has expanded it significantly, incorporating large residential areas of London – a move that has sparked significant backlash.

The cost of compliance

For many Londoners, ULEZ has brought about significant financial strain. Motorists are now acutely aware of the charges, which is £12.50 for non-compliant cars, motorcycles, vans and specialist vehicles (up to and including 3.5 tonnes) and minibuses (up to and including 5 tonnes).

If you drive within the zone, you’ll have to pay by midnight on the third day following your journey. And if you don’t pay on time, you risk getting a Penalty Charge Notice (PCN), of up to £180!

For businesses operating in and around London’s ULEZ, the expansion of the zone has introduced a challenging new dilemma: should they absorb the cost of compliance to serve customers within the zone, or avoid the area altogether and risk losing valuable business?

This is no small decision. The daily ULEZ charge for non-compliant vehicles can quickly add up. For some, the fee might seem manageable on a per-journey basis, but when multiplied over weeks or months, the financial impact becomes significant.

The decision becomes even more complex for businesses that operate on thin margins or those still recovering from the financial impacts of the pandemic. For them, the ULEZ charge isn’t just another cost—it’s a potential threat to their survival. Upgrading their fleet to meet ULEZ standards is a significant investment that many small businesses simply can’t afford.

For tradespeople and service providers, where proximity and availability are often key selling points, choosing not to enter the ULEZ could mean losing clients to competitors who are closer or more willing to absorb the ULEZ costs. This situation creates a tough choice: pass on the extra cost to clients and risk losing business, or absorb the cost and cut into already tight profit margins.

Autopay – sleepwalking into a fine?

Many regular ULEZ commuters opt to auto-pay, when you enrol to automatically pay every month for any Congestion Charges, ULEZ and/or LEZ charges you may owe. There are no registration or renewal fees, and options for personal, business or fleet use.

However, there are pitfalls that can catch even the most vigilant drivers off guard. You could still receive a ULEZ fines even if you’re not actively driving your vehicle.

This is because failure to remove a vehicle from the auto-pay system can result in fines. This includes instances where vehicles are being towed. So you must make sure to update your ULEZ autopay account to reflect any changes in ownership or vehicle status to avoid unwarranted fines.

Many drivers also reported problems with the auto-pay service, including taking the money out of their account too late or not at all. One London motorist received fines despite paying the charge, since another vehicle’s number plate was mistaken for his. It’s clear that there’s pain points that need ironing out!

Scrappage scheme is over – time to wake up!

To encourage commuters to swap out their more polluting motors in favour of something more eco-friendly, and offer some financial recourse to drivers, ULEZ came with a scrappage scheme. Under this system, all London residents could apply for up to £2,000 for scrapping or donating a car or up to £1,000 for scrapping or donating a motorcycle. For wheelchair accessible vehicles there was a payment of £10,000 to scrap or donate, or £6,000 to retrofit to the ULEZ standards.

But, this scheme has come to an end as of the 8th September. Since January 2023, £247m has been distributed to 69,000 applicants to the scrappage scheme. In some ways that’s a huge success, taking some of the most polluting vehicles off London’s roads. But it’s also meant stress and upheaval for drivers who had to swap out their motors, even with the financial bonus sweetening the deal.

And what does it mean for the future? Perhaps it hasn’t been feasible or affordable for some people to upgrade their vehicle, even with the scrappage allowance. With the scrappage scheme now over, there’s no support in place for those who would still like to make the swap for a more environmentally vehicle.

The case for cleaner air

Despite the challenges, it’s important to recognise that air pollution is a significant issue, with no borough in London currently meeting the World Health Organization’s standards for clean air. The toll of toxic air on children’s lungs is particularly alarming, with growing evidence that these impacts can last a lifetime.

Moreover, London’s efforts to tackle air pollution have not gone unnoticed on the global stage. The World Heart Federation recently ranked London second only to Hong Kong in its ‘City Heartbeat Index,’ which measures cities’ efforts to prevent and treat heart disease. ULEZ played a significant role in this recognition.

The road ahead

As ULEZ evolves in London, and more zones come into place around the UK, they’ll certainly continue to divide opinion. While they play a crucial role in addressing the air quality crisis, the financial and logistical burdens they place on drivers and businesses cannot be ignored.

Whether you view ULEZ as a necessary step towards a healthier city or a relentless nightmare on the streets of London, one thing is clear: the road to clean air is anything but straightforward.

We’ve covered ULEZ and low emissions zones here at Howden before, as it’s such a multifaceted issue. And we also know that if you’re changing what vehicle you drive, whether for work or for pleasure, you need the right insurance advice.

Our Howden branch teams are here to help you get the right advice and tailor a policy to suit your exact needs.

Sources: BBC News, TfL, Yahoo News, ThisIsMoney, Kent Online, The Express