What does the ULEZ expansion mean for tradespeople?

From August 29th, the Ultra Low Emission Zone (ULEZ) is set to expand across all London boroughs.

Since being introduced in 2019, the government says the ULEZ has contributed to an almost 50% reduction in toxic Nitrogen Dioxide pollution in central London, and that more than one million hospital admissions could be averted by 2050 due to the restrictions. 

However, according to a study conducted by The Construction Index, one in four London tradespeople say that plans to expand the ULEZ have already had a negative effect on their business.

Another study carried out by Fix Radio found that 25% of London-based tradespeople have had to increase their prices to counteract the rising transport costs, while 23% say it is now simply too expensive to use their vehicle to drive into London.

What is the ULEZ?

The ULEZ aims to reduce harmful traffic pollution in London by cutting the number of old, or non-compliant vehicles using roads in the capital. 

Owners of petrol vehicles that do not meet Euro 4 emission standards, and diesel vehicles that do not meet Euro 6 regulations, are subject to a daily £12.50 charge for driving in the ULEZ. This applies to cars, motorcycles, vans and specialist vehicles up to and including 3.5 tonnes and minibuses up to and including 5 tonnes. 

Lorries, vans or specialist heavy vehicles over 3.5 tonnes, and buses, minibuses and coaches over 5 tonnes must pay the Low Emission Zone (LEZ) charge if they do not meet the latest emissions standard, this costs between £100-£300 per day. 

Both the LEZ and ULEZ charges are in addition to the £15 daily Congestion Charge which covers central London and applies to all vehicles. 

You can find out more about which charge applies to your vehicle on the Transport for London website. 

Does the ULEZ affect everyone?

The ULEZ charge applies to anyone entering the area in a non compliant vehicle. However, all petrol cars and vans registered new from 2006, and diesel cars and vans from 2016, should meet the ULEZ requirements. 

There are a small number of charge exemptions in place for certain vehicles including taxis, historic vehicles and vehicles with a disabled or disabled passenger vehicles tax class. 

Are there any schemes in place to support tradespeople?

In an effort to mitigate the cost of replacing or altering non-compliant vehicles, Transport for London has introduced a £110m scrappage scheme.

Under this scheme, sole traders and tradespeople working for a business with 10 employees or less can claim between £7,000 and £9,500 towards the cost of this transition. You can read more about the different claim allowances here.

You can find more information, check your vehicle’s compliance and read more about the scrappage scheme on the Transport for London website.