What Is the ULEZ Charge?

Understanding the ULEZ at a glance

London’s Ultra Low Emission Zone is designed to cut harmful pollution by charging vehicles that produce higher emissions. If your car, van or motorbike does not meet the required standards, you will be charged £12.50 for any day you drive within the zone. The charge applies once per day, no matter how many times you enter and exit, and it runs 24 hours a day, every day except Christmas Day. Non-payment now attracts a £180 penalty, reduced if paid promptly.

Since 29 August 2023, the zone covers all Greater London boroughs, up to but not including the M25. That expansion means many more drivers, particularly those commuting from outer boroughs, need to understand whether their vehicle is compliant and what their options are if it is not. Diesel cars generally need to meet Euro 6 emissions standards, typically from September 2015 registrations onwards, while petrol cars usually need to meet Euro 4, common from around 2006. Most older diesels and some older petrols will incur the charge.

Electric vehicles are fully exempt from ULEZ charges across Greater London. That can mean significant savings if you drive in the zone regularly. However, do note the separate Congestion Charge that operates in central London on set days and times - these two schemes have different aims and rules and can both apply on the same journey if you drive into central areas during charging hours. From January 2026, even EVs will pay a discounted Congestion Charge, though they will remain exempt from ULEZ.

The key is clarity. Use Transport for London’s vehicle checker before you travel, plan your route, and weigh up whether paying the daily fee, upgrading, or switching modes makes the most sense for your budget and routine.

Who needs to pay - and who does not

The ULEZ applies to most cars, motorcycles, vans up to 3.5 tonnes and minibuses up to 5 tonnes that do not meet the emissions standards. It affects residents, visitors and commuters entering Greater London in non-compliant vehicles. You will not be charged if your vehicle meets Euro 4 for petrol or Euro 6 for diesel, or if you drive a fully electric vehicle. Heavier lorries, larger vans over 3.5 tonnes and buses over 5 tonnes are not subject to ULEZ - they are regulated under the London-wide Low Emission Zone instead. Parked vehicles are not charged; the fee only applies if you drive within the zone on that day. Classic cars and older models are usually non-compliant unless specifically exempt. If in doubt, check online using your registration.

Quick reminder: the ULEZ covers all Greater London, excluding the M25 itself.

Your choices if you drive into London

1. Pay the £12.50 daily ULEZ charge when you drive.

2. Upgrade to a compliant petrol or diesel that meets standards.

3. Switch to a fully electric vehicle and pay £0 for ULEZ.

4. Adjust travel - use public transport, cycling or car share.

5. Re-route outside the zone or consolidate trips to fewer days.

6. Apply for relevant exemptions or discounts if eligible.

7. Explore TfL’s scrappage scheme if you are a qualifying Londoner.

Cost, impact, savings and risks compared

Can your vehicle qualify - the rules in plain English

Compliance depends on emissions standards, not just age, though registration dates are a helpful guide. Petrol cars that meet Euro 4 - common from 2006 onwards - are typically compliant. Diesel cars must meet Euro 6 - generally from registrations in September 2015 onward. Many diesel vans and minibuses follow similar Euro 6 rules. If you own a classic or older vehicle, it is likely non-compliant unless it qualifies for a specific historic exemption. Heavy goods vehicles and larger buses do not pay ULEZ but are monitored under the separate Low Emission Zone with its own standards.

Before you set off, enter your number plate into Transport for London’s vehicle checker. It uses GB-wide registration data to confirm your vehicle’s status for London. If you are replacing your vehicle, Kandoo can help you compare finance options from a panel of lenders, so you can target a compliant car or van that suits your budget. For London residents with lower incomes or certain benefits, TfL’s scrappage scheme may offer grants to help scrap a non-compliant vehicle and transition to a cleaner model, subject to eligibility and availability.

Getting sorted - step by step

1. Check your vehicle with TfL’s online checker.

2. Confirm your route sits inside Greater London.

3. Compare daily costs against upgrading or EV switch.

4. Review scrappage eligibility if you live in London.

5. Set up a TfL autopay account to avoid fines.

6. Shortlist compliant vehicles that fit your budget.

7. Consider charging access if moving to an EV.

8. Arrange finance and insurance before you buy.

Pros and cons at a glance

Before you set off - avoid costly surprises

Treat ULEZ and the Congestion Charge as separate. ULEZ runs 24 hours across Greater London, every day except Christmas Day, and targets emissions. The Congestion Charge aims to manage traffic in central London on weekdays, with defined hours. You may need to pay both on the same day if you drive a non-exempt vehicle into central London during charging times. Parked vehicles are not charged, but the moment you drive within the zone, the daily fee applies. Set up automatic payments with TfL to reduce the risk of the £180 penalty for non-payment. If you drive frequently, tally your expected days and multiply by £12.50 to estimate annual cost. For daily users, the total can exceed £4,500 a year, which makes upgrading - especially to an EV - financially compelling over time.

Alternatives beyond ULEZ

1. Park outside Greater London and use rail or Tube for the last leg.

2. Join a car club offering compliant or electric vehicles.

3. Switch working patterns - combine errands, car share or work from home.

4. Explore cycle hire or e-scooter trials where permitted.

5. Choose routes that remain outside the boundary where practical.

FAQs

Q: What is the ULEZ daily charge and when does it apply? A: It is £12.50 per day for non-compliant vehicles. It operates 24 hours a day, every day except Christmas Day, and applies once per day regardless of multiple entries.

Q: How do I know if my car is compliant? A: Petrol cars usually need Euro 4 and diesels Euro 6. Use TfL’s registration checker to confirm, as compliance is based on emissions data, not just age.

Q: Does ULEZ cover my area? A: Yes if you are within Greater London, excluding the M25. The zone expanded in August 2023 to include all boroughs.

Q: Are electric vehicles exempt? A: Yes, EVs pay £0 for ULEZ across Greater London. From January 2026, EVs will pay a discounted Congestion Charge in central London, but they remain ULEZ-exempt.

Q: What happens if I forget to pay? A: Non-payment now results in a £180 penalty, reduced if settled promptly. Setting up autopay can help avoid fines.

Q: Do heavy vehicles pay ULEZ? A: Lorries and larger vans over 3.5 tonnes and buses over 5 tonnes are not charged under ULEZ. They are regulated by the Low Emission Zone instead.

Q: Is there help to replace a non-compliant car? A: Qualifying Londoners may access a scrappage scheme to support scrapping or replacing older vehicles. Check eligibility and funding availability on TfL’s site.

How Kandoo can help

Kandoo is a UK-based retail finance broker that connects you with a panel of lenders to finance a compliant or electric vehicle. We help you compare options, understand total costs and choose affordable monthly repayments that fit your circumstances. If ULEZ charges are adding up, we can help you switch to a cleaner, compliant car with confidence.

Important information

This article provides general guidance only and is not financial or legal advice. Rules and charges can change, and eligibility depends on individual circumstances. Always check the latest details with Transport for London before you travel or buy.