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ULEZ expansion to create £300m in first year but £0 by 2027

Sadiq Khan's ULEZ is set to make not make any profit by 2027. <i>(Image: PA)</i>
Sadiq Khan's ULEZ is set to make not make any profit by 2027. (Image: PA)

The ultra-low emission zone expansion (ULEZ) is set to generate £300 million within its first year, but by 2027 the scheme will fall to zero profits.

It comes as the London Evening Standard revealed that Transport for London's (TfL) 'central estimate' for the new scheme will create an extra £200m within its first 12 months after the expansion to all of Greater London from August.

The £200m estimated will include a '50 per cent plus or minus' range, seeing the income range between £100m and £300m according to TfL finance chief Patrick Doig.

But, TfL also shared that they expect the zones income to drop by 2027 as more drivers switch to greener vehicles in a bid to avoid paying the £12.50 daily charge.

Complying vehicles will mean that more drivers will not need to pay the charge and will also see compliance rates increase each year from the launch.

Although the ULEZ expansion will see an increase in greener vehicles over years, the zone is set to remain in place to discourage the use of polluting vehicles in the region.

ULEZ Expansion to cost £160 million

TfL has also shared that they expect it to cost £160m to expand the zone outside of its current North and South Circular roads.

There will be an addition of over 2,700 cameras in the suburbs that can read number plates and check vehicle compliance, seeing those that do not meet regulations have to pay the charge.



The ULEZ expansion was confirmed in November last year and saw mixed reactions from many in the Greater London area.

As some described the plan as a "bloody joke" and asked, "why should we pay?"

One person shared: "So I'm now without a car then. Cannot afford a new one and cannot afford the charge. Can't take public transport as I have too many things to carry."

Whilst others agreed with the scheme as one person wrote: "Great idea, cleaner air for the children".

ULEZ expansion scrappage support scheme

However, knowing that the scheme could be costly for many, London Mayor Sadiq Khan did announce plans for a new scrappage scheme, which you can find out more about at the website here.

The £110 million scrappage scheme will support Londoners on lower incomes, who have a disability, are sole traders, charities and small businesses.

The scheme will mean that those who are eligible will receive a grant to scrap or retrofit their vehicle for certain vans and minibuses.

Plus, car owners can opt to receive a smaller grant accompanied by up to two free annual bus and tram passes, which would give them a higher financial package.