Introduction to ULEZ

In August 2023, London's Ultra Low Emission Zone (ULEZ) expanded to cover most boroughs within the M25. This guide helps businesses understand how ULEZ impacts their fleet and provides steps to stay compliant.

What is the Ultra Low Emission Zone (ULEZ)?

Launched in April 2019, ULEZ serves to reduce emissions by charging owners of non-compliant vehicles to enter the zone, therefore deterring use of potentially damaging vehicles. The zone’s expansion has significantly increased compliance; going from 40% on launch to a whopping 95%, reducing nitrogen dioxide pollution by almost 50%.

ULEZ Rules and Requirements

ULEZ standards are based on the 1992 Euro standards which are essential in controlling air pollution. The standard is in place to put a limit on emissions such as nitrogen oxide and particulate matter.

To drive in the ULEZ zone without paying the charge your vehicle must fit the following:

Motorcycles: Euro 3
Petrol Cars and Vans: Euro 4
Diesel Cars and Vans: Euro 6

From July 2025, Euro 7 standards will further tighten these requirements.

Charges for Non-Compliance

Non-compliant vehicles incur a daily charge:

Cars, motorcycles, vans: £12.50
Heavier vehicles (over 3.5 tonnes): No ULEZ charge but may incur a LEZ charge of £100.

These charges are additional to the £15 London Congestion Charge.

Find the latest rates on TFLs website.

Paying ULEZ Charges

Charges must be paid by midnight on the third day following a journey. Alternatively, you have the option to pay up to 90 days in advance.

1 car: £12.50/day or £3,000/year
5 cars: £62.50/day or £15,000/year
10 cars: £125/day or £30,000/year

ULEZ charges can add up quickly for multiple vehicles in a fleet.

Penalties for Non-Compliance

Failing to comply to the ULEZ charges results in Penalty Charge Notices (PCNs):

Cars and smaller vehicles: £180 (reduced to £90 if paid within 14 days)
Larger vehicles: £1,000 (reduced to £500 if paid within 14 days)

You must keep in mind that the daily rate runs from midnight to midnight. This means that, if you drive into the ULEZ before midnight and exit after midnight, you will be required to pay the charge twice.

Transport for London (TFL) have provided a method for auto paying a ULEZ charge to avoid penalties, however, this does rely on fleet information being kept up-to-date on the autopay system.

Exemptions from ULEZ

Some vehicles are exempt from ULEZ charges, including some older vehicles. This list isn’t comprehensive and doesn’t include vehicles that are already compliant.

London-licensed taxis (12-year age limit)
Historic vehicles (pre-1973)
Wheelchair-accessible private hire vehicles

Find the full list of exemptions.

Ensuring ULEZ Compliance

To avoid charges:

Check Vehicle Compliance: Use TFL’s vehicle checker.
Upgrade Vehicles: Ensure they meet Euro standards.
Consider Electric Vehicles: Drive an exempt vehicle.
Retrofit Existing Vehicles: Install emissions-reducing technology.
Utilize Scrappage Schemes: Available for replacing older vehicles.
Hire ULEZ Compliant Vehicles: Temporary hire solutions can be cost-effective.

Future of Emissions Zones

ULEZ represents a growing trend towards cleaner transportation with plans for additional Zero Emission Zones (ZEZs) by 2050. Current Clean Air Zones (CAZs) are already operational in several UK cities.

Flexible Solutions for Fleets

Given the evolving regulations, flexible vehicle hire offers businesses the ability to stay compliant without long-term commitments. AMT Auto have a range of options which comply with the ULEZ requirements.

Conclusion

Businesses must adapt to ULEZ and future emission standards to avoid significant costs and penalties. Flexible vehicle solutions can help manage these changes effectively.

If you’re looking for a flexible solution for managing your fleet, speak to our team.