Analysis from the RAC found the Ulez expansion will have a ‘massive financial impact’ (Picture: REX/Getty)

Nearly 700,000 drivers in London will be subject to a daily £12.50 fee when the Ultra Low Emission Zone (Ulez) expands this summer.

The expansion of the zone to cover the whole of London from August 29 will mean 691,559 licensed cars will be liable for the charge, analysis from the RAC has revealed.

The motoring group has said the expansion will have a ‘massive financial impact on motorists and businesses’, as many will be forced to switch or scrap their vehicles.

Most diesel cars registered before September 2015 and petrol cars registered prior to January 2006 could be made to pay the charge.

This figure does not even include vans and lorries, or other vehicles driving into London from outside the capital.

The zone is currently limited to the area within London’s North and South Circular roads.

But Mayor Sadiq Khan has decided to expand it to cover the whole of the capital, claiming this will boost air quality.

It comes a day after Transport for London said nine out of 10 cars driving in outer London meet the Ulez standards, so will not be liable for the charge.

Drivers may be forced to scrap their cars (Picture: Loredana Sangiuliano/SOPA Images/Shutterstock)

It also said that many drivers are switching from older, more polluting vehicles ahead of the expansion.

RAC head of roads policy Nicholas Lyes said: ‘Cleaning up London’s air should undoubtedly be a priority, but the sheer number of vehicles that don’t meet Ulez emissions standards in Greater London suggests there will be a massive financial impact on motorists and businesses through having to fork out £12.50 every day they drive in the zone.

‘We desperately need more co-ordination between the mayor and the Government to help small businesses, tradespeople, NHS staff and carers who have no choice but to drive into the expanded Ulez for work purposes from outside Greater London.

‘Consideration should also be given to those who work at night when public transport is greatly reduced in the outer boroughs.’

The zone is being expanded to cover the whole of London (Picture: PA)

Mr Lyes urged Mr Khan to consider delaying charges by a year for certain key workers, or a scheme where TfL partners with a leasing company to provide discounted Ulez-compliant vehicles to small businesses and traders.

He went on: ‘Changing to a compliant vehicle at such short notice simply won’t be something many will be able to afford, especially during a cost-of-living crisis and at a time when second-hand car prices are so high.

‘We need more creativity from London’s mayor and his team to help people out as the current scrappage scheme is akin to using a plughole to drain an Olympic-sized swimming pool.

‘It’s simply not big enough for the scale of the job.’

Mayor Sadiq Khan is being encouraged to delay the expansion by a year (Picture: Johnny Armstead/Shutterstock)

TfL is running a scrappage scheme for vehicles that do not comply with the Ulez standards.

It includes payments of up to £2,000 for eligible drivers such as those on low incomes or the disabled scrapping a car, and up to £9,500 for charities, sole traders and small businesses scrapping or retrofitting vans and minibuses.

Mr Khan said on Thursday that the aim of the Ulez is to ‘get the most polluting vehicles off our roads in order to protect both the health of Londoners and our environment’.

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The expansion will have a ‘massive financial impact on motorists and businesses.