Everything you need to know about the ULEZ since its expansion

The Ultra Low Emission Zone (ULEZ) charge was expanded in London in 2023 as part of ongoing efforts to improve air quality and reduce pollution across the city. Initially launched in Central London in 2019, the ULEZ has been widened to cover more areas in response to growing concerns over harmful air pollution, which has been linked to severe health problems, such as asthma, heart disease, and lung cancer.

The 2023 expansion extended the ULEZ to cover all London boroughs, ensuring that vehicles driving within this zone either meet strict emissions standards or face a charge of £12.50 per day for entering or travelling within a ULEZ zone in a non-compliant vehicle. This move was driven by evidence showing that air pollution affects outer London boroughs just as severely as central areas, with research by the World Health Organisation indicating that almost 4,000 Londoners die prematurely each year due to air pollution.

The expanded ULEZ charge is designed to discourage the use of older, more polluting vehicles by imposing a daily fee on vehicles that do not meet emissions standards. The revenue generated from these charges is reinvested into public transportation and sustainable travel initiatives, promoting the use of cleaner vehicles, and reducing overall traffic congestion.

The goal is to accelerate the transition to greener transportation, encourage the use of electric vehicles, and create a healthier, more sustainable environment for Londoners.

By targeting areas beyond the city centre, the expansion aims to improve air quality for a larger proportion of the population, benefiting both public health and the environment.

The cost of non-compliance with ULEZ

If you live or work in Greater London, it is now far more expensive to drive an older car. The London Ultra Low Emission Zone (ULEZ) expanded on August 29, 2023, to cover almost the entire area inside the M25 motorway (including Heathrow Airport), and all 32 London boroughs. It stretches as far north as Enfield, east to Rainham, west to Uxbridge and south to Croydon, but some areas, such as Chigwell, Epsom and Watford, remain outside the ULEZ zone.

Here's a comparison table showing the cost of driving in London's ULEZ (Ultra Low Emission Zone) for a non-compliant car (which incurs a daily charge) versus a compliant car (which incurs no charge) over different time periods.

Key assumptions:

• ULEZ operates every day, so the daily charge applies every day of the week.

• This assumes daily usage of the vehicle within the ULEZ zone.

What area does the extended ULEZ cover?

Since August 29, 2023, the ULEZ has covered all 33 boroughs of Greater London. 

ULEZ Expansion Map

Extended ULEZ Map

Has anything else changed about the ULEZ charge?

Yes. The penalty charge for not paying the ULEZ charge increased from £160 to £180 (reduced to £90 if you pay it within 14 days).

The daily £12.50 charge you must pay and the emission standards your car must meet to be exempt from paying the ULEZ charge remain unchanged.

Who needs to pay the ULEZ charge?

Anyone who drives a vehicle that doesn’t meet the emission standards within the ULEZ must pay the £12.50 daily ULEZ charge. This includes those residing within the ULEZ.

You don’t have to pay the ULEZ charge if your car is parked within the ULEZ and you don’t drive it.

The ULEZ charge applies 24 hours a day, seven days a week, every day of the year, except Christmas Day.

What are the ULEZ emission standards?

To be exempt from paying the ULEZ charge, your car must meet the following emission standards:

• Petrol cars (including petrol-hybrid) – Euro 4 or higher

• Diesel cars (including diesel-hybrid) – Euro 6 or higher

As a rule of thumb, if your petrol car was manufactured after January 2006, it is likely to be ULEZ compliant. If your diesel car was manufactured after September 2016, it is likely to be ULEZ compliant.

TIP: Plug-in hybrids and fully-electric cars meet the ULEZ emission standards so don’t have to pay the ULEZ charge.

What should you do if your car is no longer ULEZ-compliant?

As an Uber driver, paying £87.50 every week without any compensation makes it hard to stay in a non-ULEZ-compliant car.

The good news is that switching to an electric vehicle, which are exempt from paying the ULEZ, is now more affordable than ever. At Splend, we also make the process of becoming an Uber driver a very straightforward one.

Uber continues to add new incentives to make EVs more accessible to their drivers.

Selling your existing car is also a good idea, focusing on areas outside London where drivers (who do not frequent the ULEZ) are more likely to buy it and pay the highest amount.

A hassle-free option to consider is part-exchanging your old PCO car for a brand-new EV.

You can use its value to offset the cost of a brand-new electric car on Splend’s Flexi own subscription plan.

The benefits of driving an EV

Driving an electric vehicle in London offers a range of benefits, including financial savings, environmental advantages, and practical incentives. Here’s a breakdown of some of the benefits:

1. Financial savings

• No Congestion Charge: EVs are currently exempt from London’s daily Congestion Charge, saving up to £15 per day for those driving in central London. This exemption is due to expire on December 25, 2025.

• Ultra Low Emission Zone (ULEZ) Exemption: EVs do not incur ULEZ charges, which apply to most other vehicles. This can save £12.50 per day.

• Reduced fuel costs: Electricity is generally much cheaper than petrol or diesel, particularly if drivers charge during off-peak times.

• Government incentives: There are grants and tax incentives for EV owners, such as reduced Vehicle Excise Duty (VED) and discounts on home charging stations.

2. Environmental impact

• Zero tailpipe emissions: EVs produce no exhaust emissions, improving air quality in the city and supporting London’s push towards becoming a zero-emission city by 2030.

3. Practical and convenience benefits

• Priority parking: Several boroughs offer discounted or free parking for EVs, along with designated EV-only spaces.

• Charging infrastructure: London has over 21,000 public charging points, including rapid charging stations, with continued growth in infrastructure.

• Low maintenance costs: EVs typically have fewer mechanical parts than combustion vehicles, leading to reduced maintenance and servicing costs.

4. Higher rideshare earnings

• Premium rideshare categories: EV drivers in London may qualify for higher-earning rideshare categories (e.g., Uber Green or Uber Comfort) that offer increased fares.

5. Long-term value

• Future-proofing: With London’s growing commitment to sustainability, owning an EV protects against future legislation that could further restrict fossil fuel powered vehicles.

• Increased resale value: As demand for EVs grows, their resale value is expected to remain strong.

These factors, and more, make EVs an increasingly attractive choice for professional drivers in London.

The current state of play for ULEZ

There was much debate over ULEZ in the lead up July’s General Election, which was won convincingly by the Labour Party.

The previous Conservative government wanted to reverse the 2023 ULEZ expansion, whilst Labour wanted to maintain it and reduce driver operating costs in other areas, such as reduced insurance premiums.

It seems that ULEZ and other low and zero emissions initiatives are here to stay. At Splend, we very much see the drive towards sustainability as key for the UK rideshare economy and are doing all we can to support that by giving people the best experience possible, and by making owning your own EV easy, affordable, and as beneficial as possible.

About Splend

At Splend, we believe in drivers. We know their vehicles need to work harder than most; that they drive more miles than most; that their insurance is hefty; their maintenance costs high and that they can face unreasonable finance rates – which is a heavy load to carry on their own.

That’s why at Splend, we exist to support rideshare drivers with a new model, that takes all those car ownership costs, and provides them for less, with lower purchase prices, better rates, lower servicing and insurance costs – all for one weekly repayment, all in one place.