Are your employees ready for the Ultra Low Emission Zone (ULEZ) expansion?

Starting from August 29, 2023, the Ultra Low Emission Zone (ULEZ) will be extended to cover all London boroughs. This move aims to bring cleaner air to an additional 5 million people.

This means that approximately one in five drivers in outer London won't be able to drive their older vehicles without facing a significant fee. Some drivers might opt to buy a slightly newer model to avoid the fee, while others could switch to public transport or consider upgrading to electric cars.

It's important for businesses across wider London to take action now and prepare for the impact this change will have on their staff and customers. Even businesses outside of London should think about getting ready.

Clean air zones with different rules are being introduced across the country due to growing concerns about the health risks of older vehicles, such as higher asthma rates and premature deaths. Climate change concerns also play a role in these initiatives.

Making sure your team can get to work

If you expect your employees to be at your business every day, you need to make sure they can get there easily.

The way that might have worked a few years ago, like driving in from outer London, might not be the best choice now.

Start by checking if there's a good public transport option for your business. Find out where the nearest bus stops or public transport points are and make sure your staff know how to use them.

But public transport can be expensive, especially in London. And if your staff drive older cars and get charged more in the ULEZ, paying thousands of pounds each year for a season ticket or similar might be tough.

You can help by helping with their public transport costs. This can be done through a salary sacrifice, which means they pay less tax. Another option is a scheme like The Electric Car Scheme, which could make it cheaper and cleaner for employees to commute.

Getting ahead of the curve by embracing electric cars

The ULEZ does not require drivers to upgrade to an electric car. But there are signs these regulations will eventually head that way, as pure fossil fuel cars are banned from sale from 2030. Oxford has already instituted a “ZEZ” (Zero Emission Zone) – meaning no petrol or diesel cars can ordinarily drive through its city centre during the day without paying a charge.

London isn’t about to launch one of those immediately, but it is definitely worth putting in the work to embrace electric cars now, so you’re not left in the lurch when everyone suddenly wants to get involved in future.

There are few great ways to embrace electric cars as a business owner.

The first is by offering your employees electric cars through The Electric Car Scheme. This lets them lease a car with their pre-tax earnings, which can lead to huge savings depending on their income. Employees who lease a car through my company save on average £12,000 over the lifetime of a lease – and it costs their employers nothing.

But the cars themselves need some support. If you have a carpark for company staff or for customers look into getting charging ports installed. While most people will charge their car at home, in places like London a lot of people don’t have garages, so a way to charge outside of the home is always welcome. This will support your staff and also attract the growing amount of people switching to an electric car. A lot of businesses will have chargers soon – it makes sense to get ahead while you still can.

London's ULEZ Scrappage Scheme now available to all residents

Sadiq Khan, the Mayor of London, has expanded the scrappage scheme for the city's ultra-low emission zone (ULEZ) to include all London residents. Starting from August 21, 2023, every Londoner with a car that doesn't meet ULEZ standards can receive a £2,000 grant.

This means that if you live in any of the 32 London boroughs or the City of London and have an eligible vehicle, you can apply to trade in a car or motorcycle.

Moreover, small businesses and sole traders can get grants of up to £21,000 to scrap up to three vans, while charities can receive up to £27,000 to scrap up to three minibuses.

For more information, visit the TFL website here.

Communicate with customers about ideal routes

Of course, not all of your customers are going to suddenly switch to an EV, and some might decide to ditch driving altogether once the ULEZ comes in.

Ahead of August, work out the best public transport routes to your business from various other areas. Is there a big transit stop within a five-minute walk? Or a regular bus just outside the door?

Once you work out a good route, communicate these routes to customers ahead of August to help them find other ways of getting to you without driving. If you have an email list send out clear instructions. Some customers who have driven for years might not realise that your business is easy to reach on public transport.

Getting your business ULEZ-ready makes more than just immediate business sense. As companies increasingly look to operate sustainably, “Scope 3” emissions are increasingly becoming part of the conversation. Those Scope 3 emissions include how your staff get to work. So again if you want to be ahead of the curve, there’s every reason to start getting greener right now.

Sign up to The Electric Car Scheme and support your team’s journey to Net Zero

Choosing a sustainable option should be easy and affordable, with no compromises. When the better option for your wallet also helps the environment, the decision is obvious. You can help speed up the shift to net zero by enabling everyone to make this choice. With the ULEZ expansion, you can assist your employees in getting into electric cars and saving money through salary sacrifice.

Why choose The Electric Car Scheme? You will receive the best prices on electric cars available in the market, unrivalled protection against unexpected costs, and a trusted 5* service that goes above and beyond your expectations. Book a call with one of our Product Specialists here.