17 October 2017

New central London T-Charge set for launch ahead of ULEZ

A toxicity charge, known as the T-Charge, is to be introduced in Central London on Monday 23rd October, targeted at the oldest and most polluting vehicles. The T-Charge comes 18 months ahead of the capital’s Ultra-Low Emission Zone (ULEZ).

The T-Charge is a £10 per day, per vehicle emissions surcharge which applies to vehicles, including cars, vans, minibuses, buses, coaches and HGVs that do not meet Euro4 standards – typically diesel and petrol vehicles registered before 2006. It will operate on top of and during the same operating times as the current congestion charge (Monday to Friday, 7am-6pm).

The T-Charge applies inside the London Congestion Charge Zone and is in addition to that fee (£11.50 or £10.50 for Auto Pay customers). The T-Charge will use the same payment and operational systems as the congestion charge, meaning that both charges will be applied, if necessary, in the same transaction.

A failure to pay the daily T-Charge will trigger a Penalty Charge Notice (PCN) of £130 – reduced to £65 if paid within 14 days – payable by the registered vehicle keeper or operator.

It is widely believed that most fleet vehicles will not fall foul of the T-Charge, but some businesses do continue to operate some pre-2006 models, particularly light commercials.

The T-Charge is the forerunner to the introduction of the ULEZ on 8th April, 2019 and Activa Contracts is urging fleet operators to check the emission standards of their current vehicles. The T-Charge will end when the ULEZ comes into force.

The ULEZ will also cover the same area as the congestion charging zone. Petrol vehicles that do not meet Euro4 emission standards and diesel vehicles that do not meet Euro6 emission standards will have to pay a ULEZ daily fee (£12.50 for cars, vans and motorbikes; £100 for buses, coaches and HGVs) to drive in the zone.

Furthermore, London Mayor Sadiq Khan is proposing to extend the ULEZ across Greater London for heavy diesel vehicles, including buses, coaches and lorries in 2020, and up to the North and South Circular roads for cars, vans, minibuses and motorcycles in 2021.

Further information on the T-Charge is available here.