WITH the Ultra-Low Emissions Zone (ULEZ) set to expand on Monday (October 25), new research from digital bank Zopa reveals that city drivers could be hit by a mammoth charge of £40 million a month across London and Birmingham alone.

Cars, motorcycles, vans and other specialist vehicles (up to and including 3.5 tonnes), and minibuses (up to and including 5 tonnes) need to meet the ULEZ emissions standards, or pay a £12.50 daily charge when driving within the expanded ULEZ zone.

The ULEZ operates 24 hours a day, 7 days a week, every day of the year except Christmas Day.

The current ULEZ emissions standards will continue:

• Euro 3 (NOx) for motorcycles, mopeds, motorised tricycles and quadricycles
• Euro 4 (NOx) for petrol cars, vans and other specialist vehicles (up to and including 3.5 tonnes gross vehicle weight) and minibuses (up to and including 5 tonnes)
• Euro 6 (NOx and PM) for diesel cars, vans and other specialist vehicles (up to and including 3.5 tonnes) and minibuses (up to and including 5 tonnes)

For motorists with older vehicles, the new charges pose a financial dilemma: rack up potentially large charges each month or trade in their car for a newer, lower emissions model.

Signs at every entry point will tell you when you are entering the zone and advance information signs will be installed on surrounding major roads.

There are no barriers or toll booths. Instead, cameras will read your number plate as you drive within the zone and check it against our database. This will tell automatically whether or not your vehicle meets the ULEZ emissions standards.

Zopa’s research reveals that:

• As a result of the new ULEZ charges, purchasing a compliant car becomes a cheaper option than paying the new charges on old vehicles
• For London drivers who regularly travel into the ULEZ area, purchasing a new compliant vehicle could save them on average £1,860 a year in comparison to paying the daily charges
• For Birmingham drivers where the CAZ charge is lower than ULEZ, drivers could still save£240 a year on average by updating their vehicle to a compliant used model
• Combined, London and Birmingham low emissions zones alone impact more than 110,000 cars

The London ULEZ expansion follows the introduction of a Clean Air Zone (CAZ) in Birmingham in June of this year, with Bristol also set to introduce one in Summer 2022.

The savings are calculated on Zopa’s average monthly repayment costs for its Hire Purchase product, which is currently £220 a month for a compliant, used vehicle.

Tim Waterman, Chief Commercial Officer at Zopa said: “Now is the time for motorists to get out the calculator and see how the new emissions charges might affect their finances. Upgrading your car to a newer used, compliant model is easy to do at Zopa and will allow drivers to avoid the daily charges, but also ensure they’re doing their bit to keep emissions down in their local area. Less to pay and less pollution is a win win.”

 “Cars that are not ULEZ/CAZ compliant are also likely to drop in value quickly as people factor the additional cost into their purchase. It is beneficial now more than ever to sell your non-compliant car and replace it with a more fuel-efficient model.”

Since 2015, more than 60 local authorities have been ordered to tackle illegal levels of air pollution and many are planning to introduce clean air zones this year and next. Even more people could therefore benefit from trading in their old car and purchasing a compliant, used car before further charges are announced in other cities.

 Nick Bowes, Chief Executive at Centre for London said: “The expanded Ultra Low Emission Zone is the most ambitious scheme of its kind in the world. As COP26 gets underway, all eyes will be on London to watch how successful the ULEZ will be at cleaning up the capital’s air.

 “However the ULEZ has its limitations. It’s an analogue scheme in a digital age, relying on technology from 2003. Many petrol and diesel vehicles are still exempt from the scheme and extending the reach of a flat charge may incentivise Londoners to drive more to get value from their daily payments. And less well-off Londoners who rely on their cars for work and lack the means to switch to a cleaner vehicle will be particularly penalised.

 “The Mayor of London should use COP26 as an opportunity to be bold and kickstart plans to replace the growing patchwork of road charges with a simpler, smarter and fairer road user charging scheme which ensures road users pay for the true cost of a journey.

 “A pay-per-mile road user charging scheme would improve air quality, reduce congestion, encourage Londoners to walk, cycle and use public transport, and help to plug the yawning hole in Transport for London’s budget. Any additional revenue could also top up the Mayor’s scrappage scheme and help Londoners exchange their polluting vehicle for a cleaner one.

 “The likelihood is that at some point in the near future the government will have to introduce a nationwide road user charging scheme to replace lost fuel duties. The Mayor should grab the opportunity to go further now so that London has a system that works for the city.”