PERVERSE C-CHARGE LOOPHOLE ENCOURAGES PEOPLE TO DRIVE ROUND LONDON

12.01.00am GMT Mon 7th Nov 2005

The London Assembly Liberal Democrats will later today call for a loophole in the Congestion Charge payment system to be closed that gives a 'perverse incentive' to people with a residents discount to drive more within the Zone.

Currently anyone who lives within the Zone is entitled to a 90% resident discount, and instead of paying £8 to drive in the area, pays 80p. However, as the C-Charge current payment system only accepts a minimum amount of £4 in a week, it means that drivers within the zone have to drive around the Zone every weekday to gain the full benefit of the residents discount. This therefore encourages greater use of cars within the Zone.

In a submission to Transport for London, the Liberal Democrats are calling for the minimum payment period to be extended beyond a week so that residents within the Zone do not feel compelled to drive more than they have to get the best value for money and keep congestion to a minimum.

The Lib Dems feel this is especially relevant after the Mayor and TfL admitted that the expansion of the C-Charge westwards will increase traffic in the existing zone because of "some residents of the western extension zone becoming eligible for a discount and choosing to drive more in the existing charging zone".

Liberal Democrat London Assembly Transport spokesperson, Geoff Pope, said:-

"The loophole in the current Congestion Charge payment system makes a mockery of its ability to reduce traffic in the capital. Once the Mayor has ploughed ahead with his Westward extension, the ambiguity in the way residents pay will become very noticeable, as there will be many thousands more people who will qualify for the discount.

"The Mayor and Transport for London must accept that the current payment system carries a perverse incentive that actually encourages some people to drive in the Congestion Charge zone more than they actually need to.

"It is time Mr Livingstone saw sense and brought this particularly potty policy to an end."

Ends

Notes to editor

In the Mayor's statement regarding the westward extension of the Congestion Charge he said:-

"I regret the projected small increase in traffic (about 2%) and of levels of congestion (about 4-5%) within the existing charging zone which will inevitably follow from the extension. This results from some residents of the western extension zone becoming eligible for a discount and choosing to drive more in the existing charging zone, and from some east-west traffic that previously diverted round the central zone which will choose to pay to drive through the extended zone."

Taken from page 3:

http://www.london.gov.uk/mayor/congest/docs/mayor-statement-092005.pdf

A full copy of the Transport for London Bill can be found at:-

https://www.tfl.gov.uk/tfl/downloads/pdf/ini-lla-tfl-bill.pdf