TfL Ref: FOI-2241-2425
Thank you for your further request received by Transport for London (TfL) on 14th October 2024 asking for information about the cost of a ULEZ Penalty Charge Notice.
Your request has been considered in accordance with the requirements of the Freedom of Information Act and our information access policy.
Specifically you asked the following, further to case reference FOI-2028-2425, about the cost of a ULEZ Penalty Charge Notice (PCN) for failure to pay the daily charge:
“Please therefore provide the information requested as to how the fine for non payment has been calculated”.
I can confirm that we hold the information you require.
By way of background, we have endeavoured to provide information to all motorists on the existence of the ULEZ and how it operates. This includes extensive information on our website and a comprehensive signage strategy. Our website contains full details of how the scheme operates, including a detailed map of the ULEZ and a vehicle compliance checker. These can be found here: https://tfl.gov.uk/modes/driving/ultra-low-emission-zone
In regard to the calculation of the daily £12.50 charge, this was decided upon following evidence-based analysis for the Central London ULEZ in 2015 and following consultation for the inner-London expansion in 2017. For the London-wide ULEZ that came into operation in 2023 the charge level has been retained at the existing level.
The Report to the Mayor for the Central London ULEZ published in March 2015 sets out the rationale for the charge level. This stated that the charge level is, “based on the contribution to emissions of the vehicle, the propensity to travel in the zone and the likely response of the vehicle owner.” The supplementary information document for the inner-London ULEZ consultation included analysis of the impact of the charge level to determine the extent to which different groups respond to different charge levels. This noted: “The behavioural response to a range of charges for car drivers was modelled using stated preference survey data. At the lower range of charges there was a significantly lower range of expected compliance with the standards as a larger proportion of drivers would opt to stay and pay the charge.”
The Report to the Mayor for the London-wide ULEZ states, “The charge level of £12.50 has proved successful for both the central and the inner London ULEZ. It provides an effective incentive for frequent drivers of noncompliant vehicles to change their vehicles or mode of transport while still allowing infrequent journeys to be affordable.”
In regard to the level of the Penalty Charge Notice (PCN) for non-payment of the daily charge, this was originally priced to match the PCN level for the Congestion Charge at the time, which was £130 when the ULEZ was first proposed, but had increased to £160 by the time the ULEZ went live in central London in April 2019. The charge was further increased for both the ULEZ and Congestion Charge to £180 in January 2023. All PCN charges are discounted to 50 per cent if paid within 14 days.
Note that the daily charge level for entering the ULEZ in a non-compliant vehicle and the Penalty Charge Notice level serve different purposes. The £12.50 daily charge has been set at a level to enable occasional trips to be affordable, while at the same time encouraging those who frequently travel into the zone to upgrade their vehicle as they contribute more to harmful emissions, or to switch to walking, cycling or public transport where possible. The PCN level is set higher to act as a deterrent to people not paying the daily charge if their vehicle is non-compliant. Over time, the deterrent effect of receiving a PCN has decreased. This is due to a number of factors including inflation, increases to public transport fares and the fact that the proportion of vehicles given multiple PCNs increased from 25 per cent to 32.3 per cent between 2019 (when the scheme was introduced) and 2021. The penalty charge level needed to increase for the scheme to maintain its deterrent effect and achieve its objectives, hence the increase from £160 to £180 in January 2023 as referenced in our earlier response.
If this is not the information you are looking for please do not hesitate to contact me.
Please see the attached information sheet for details of your right to appeal as well as information on copyright and what to do if you would like to re-use any of the information we have disclosed.
Yours sincerely,
David Wells
FOI Case Officer
FOI Case Management Team
General Counsel
Transport for London
