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Drivers are being hit with significant increases in parking costs as councils across England introduce extra charges for petrol and diesel vehicles.
Roughly 20% of councils now apply environmental surcharges to both on-street parking and residents’ permits, aiming to cut emissions and push drivers towards cleaner transport. Recent adopters of the scheme include East Sussex and Bath and North East Somerset, while two-thirds of London boroughs now vary charges based on fuel type. These fees are separate from existing clean air zone penalties targeting older, more polluting cars.
However, unlike clean air zones, these parking surcharges often aren’t clearly marked on signs or meters. Many motorists only find out about them when they go to pay using a parking app, where the extra charge appears at the final checkout stage.
Councils argue the levies help reduce pollution, but motoring groups have raised concerns, saying the lack of signage and inconsistent pricing make it hard for drivers to know what they’ll be charged. The system varies widely — some councils target only diesel vehicles, others base charges on engine size or CO2 emissions, creating up to a dozen different price bands for the same parking space.
In some cases, vehicles that are compliant with Euro 6 emissions standards — and therefore exempt from London's ultra-low emission zone fees — are still subject to parking surcharges. According to the AA, these fees amount to a hidden tax that places an unfair burden on lower-income drivers and could damage the economic vitality of town centres.
A spokesperson explained that while a charge covers the cost of a service, anything above that is effectively a tax. “Linking emissions to parking costs is just another way for councils to generate revenue,” they said.
Residents and workers in the affected areas are also speaking out. In Lambeth, annual permit fees have surged by as much as 400% since 2023 — even impacting key workers like doctors and teachers, who now face charges up to £1,000 a year. Charges are divided into 13 emission bands, with extra fees for diesel vehicles.
One resident, Will Freeman, said the cost of his permit for a Euro 6 diesel car jumped more than a third this year to £795, after almost doubling the year before. Just across the borough line in Bromley, the same permit costs £150. “We bought our car in 2018 based on what the permit cost then and expected only modest increases. Now the pricing changes constantly, and we can’t afford a new vehicle or a home with private parking,” he said.
Lambeth Council stated that the latest fee increases were publicised online, in local media, and through email alerts to residents. However, notices on streets and in car parks don’t mention the charges that affect pay-as-you-go drivers.
Westminster has gone further, applying surcharges to electric vehicles based on battery size, citing environmental impact during manufacturing and increased road wear from heavier vehicles. The council says revenue from these charges funds road and environmental improvements, and signs in parking areas make the policy clear.
The rise of app-based payments has made it easier to apply these fees. Apps automatically retrieve a car’s emission data from the DVLA using the vehicle’s registration, then add the surcharge at checkout — often along with a convenience fee of up to 20p. However, drivers who use traditional pay-and-display machines can sometimes avoid these charges.
The Commons transport committee has previously questioned whether raising parking charges for environmental reasons is legal. It stated that while councils can reward cleaner vehicles with discounts, increasing standard charges for others may be considered an unlawful tax.
A government spokesperson commented: “Our guidance advises that parking charges should be fair and strike a balance between the needs of residents, businesses, and visitors.”
