Utility Companies & Councils to Pay £2500 Penalties for Roadworks During Peak Times

Whenever you see the signs that announce roadworks, especially those during peak periods, your heart sinks. Whether it’s a busy area or not, roadworks that take place during the day will invariably lead to traffic problems and congestion; more so on major routes.

In 2018 plans were announced by The Department for Transport to introduce a £2500 penalty for roadworks at peak times are aimed at reducing this congestion, with utility companies and council contractors being the ones to foot the costs. At that time, it was estimated that the total cost per year to the economy in lost productivity through driver delays was over £4bn!

After initial trials in London and Kent to analyse the impact of such charges, there was an upsurge in planned roadworks to take place out of peak times, causing much less disruption and chaos. Utility companies had to change when and where they carry out work to avoid these penalties, with planned works in the capital reduced by 42%!

Since 2018, this scheme has been rolled out nationwide. It is now known as the Lane Rental Scheme and comes under the UK Government Plan for drivers, encouraging smoother journeys for all road users. The Lane Rental Scheme now also been updated since its initial roll out to give guidance and advice to support the uptake of lane rental by those who need to undertake works on the highway network. This includes:
• advice on joint lane rental schemes
• updates to cost-benefit analysis requirements
• and other updates to help reduce the administrative burden for applications to operate lane rental

The Street works: fines and lane rental surplus funds consultation was also introduced on 15 January 2024. This concluded in March 2024 with suggestions to focus on:

Increase in Fixed Penalty Notices (FPNs)

Suggested for specific street works offences:
• Failing to send work start-stop notices on time
• Failing to send notice of reinstatement completion on time
• Working without a permit
• Breaching permit conditions

Allocation of Surplus Lane Rental Funds

At least 50% of any surplus funds gained by lane rental schemes by local highway authorities should be dedicated to pothole repair.

Application of Overrun Charges

Proposals to extend overrun charges to include weekends and bank holidays, ensuring that works are completed promptly and minimising disruption during peak travel times.

The UK Government have approved these proposals and will amend existing regulations and update relevant codes of practice and statutory guidance.