Ulez Revenue Tops Half a Billion Pounds Since London Expansion
London Mayor Sir Sadiq Khan faces accusations of "turning driving into a luxury" as newly obtained figures reveal the Ultra Low Emission Zone (Ulez) has generated more than £500 million since its controversial 2023 expansion. Transport for London (TfL) data shows that in the 29 months since the zone expanded to cover all London boroughs, it has collected £514,133,202 in levies and penalty charges.
Record Income and Political Backlash
This substantial amount represents over £100 million more than the scheme generated in the same period before its expansion. The Ulez achieved a record-high income of £219 million in 2025 alone, compared to £215 million in 2024. Shadow Transport Secretary Richard Holden told the Daily Mail that Sir Sadiq "did not care about the capital's drivers," claiming Labour's "anti-driver obsession is pricing people off our roads and out of our capital."
The Basildon and Billericay MP added: "Motoring policies were hitting working people, especially those who rely on vehicles to earn a living. They are essential for millions just to get around. Sir Sadiq Khan and Sir Keir Starmer keep pretending it's about clean air, but really, it's about the cash. Half a billion pounds of it."
How Ulez Works and Who Pays
The Ulez charge applies to vehicles that do not meet specific emissions standards for nitrogen oxides (NOx) and particulates. Petrol cars must usually have been registered after 2005 to be exempt, while most diesel cars need to have been registered after September 2015. Drivers of non-compliant vehicles entering the zone must pay £12.50 daily unless they qualify for exemptions, such as taxis or transport for disabled people.
Those who fail to pay the charge by midnight on the third day after their journey face fines, with penalty charges potentially reaching £280 if ignored. TfL has intensified enforcement efforts, including seizing vehicles from persistent evaders and threatening bankruptcy proceedings in extreme cases.
Outer London Criticism and Small Business Impact
The zone's expansion into outer London boroughs has drawn particular criticism. Conservative MP Bob Blackman for Harrow East stated the figures support the idea that Ulez "is a straightforward revenue-raising exercise with minimal impact on air quality in outer London boroughs." He highlighted the "serious impact" on older drivers who "cannot afford to change their vehicles" and small businesses forced to either scrap vans or pass costs to customers.
"I know many small businesses who now live outside London who refuse to take on jobs due to the cost of motoring," Blackman added, reflecting widespread concerns about economic consequences.
TfL's Defense and Air Quality Claims
Transport for London counters that Ulez net revenue is decreasing annually when operating costs are considered, with more than 97 percent of vehicles in London now compliant. Alex Williams, TfL's chief customer and strategy officer, asserted: "Thanks to the Ulez, all Londoners are now breathing cleaner air and benefitting from improved air quality."
He emphasized that any income generated from Ulez, the congestion charge, and the Low Emission Zone (Lez) is reinvested into public transport as required by law. The Lez and congestion charge have generated £22.9 million and £670 million respectively since the 2023 Ulez expansion.
Enforcement Challenges and Unpaid Fines
Enforcement remains a significant challenge, with £438 million owed to TfL in unpaid fines as motorists ignore penalty notices. More than 100,000 cars have received five or more fines, and 76,000 have received ten or more. In September, Sir Sadiq warned repeat fine dodgers they could face bankruptcy if they fail to pay.
TfL has showcased enforcement actions, including boasting about how "enforcement agents tracked down a persistent evader linked to 118 outstanding warrants" while sharing photos of seized vehicles like a BMW. The organization has suggested "there can be a link between the behaviour of deliberate evasion and other areas of criminality."
Scientific Scrutiny of Air Quality Benefits
Despite TfL's air quality claims, a breakthrough study from the University of Birmingham in October found the 2023 Ulez expansion had no significant impact on lowering air pollution. Scientists noted London still faces air pollution levels well above international health-based guidelines, raising questions about the scheme's effectiveness beyond revenue generation.
The ongoing debate highlights tensions between environmental goals, economic impacts, and transport accessibility in one of the world's major cities.
