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Workplace Parking Levy FAQs

Frequently asked questions and answers related to the Workplace Parking Levy (WPL).

Further information

Where would a Workplace Parking Levy apply and who would have to pay?  

We have the option of introducing a WPL in specific area(s), or across the whole city. There is currently only one WPL in the UK – in Nottingham, where it applies to the whole city administrative area, and any employer with 11 or more liable parking spaces. 

A WPL would be charged to the employer, not the employee, although the employer can, if they wish, pass the charge on to employees who choose to park in a designated parking space.

What constitutes a designated workplace parking space would need to be determined, though generally speaking it would apply to any space within the workplace, whether marked or not (for example, it could include cars parked on internal roads or verges).

WPL would apply to off-site parking purchased by an employer on a third party’s land, including within public car parks.

Public sector employers (including councils, schools, universities, colleges and NHS) who provide staff car parking could be covered by a WPL, although exemptions and discounts can be applied where appropriate.

Depending on what exemptions are agreed a WPL could apply to parking spaces used by:

  • Employees
  • Students / pupils
  • Business customers
  • Business visitors
  • Suppliers, delivery vehicles
  • Fleet, display vehicles

A WPL does not apply to public car parking or customer parking spaces.

How much would WPL cost per space and how much could it raise? 

It’s not possible to estimate how much a scheme in Leicester would cost until more detailed work has been carried out on the levy.  

However, in Nottingham the rate is currently £415 per parking space per year. This has generated around £64million of revenue since 2012.

Could funds be secured from other sources instead?     

We have limited transport funds available to invest in improving city transport services in Leicester and have increasingly relied on Government grants and developer grants and funds.

To deliver longer term transport investment and associated benefits, a sustained and reliable funding source will be required. WPLs can provide this to ensure greater certainty to deliver our transport plans and address ongoing transport and related challenges. Other funding options are potentially available, including congestion charging.  

We could use revenue from a WPL as ‘match funding’ to attract additional external grants, particularly from central Government. For example, Nottingham raised over £430million of additional external funding in this way to help pay for its tram, train station and electric bus projects.

What are the benefits of WPL?

  • Employers who pay the charge will have an incentive to reduce workplace parking in the long term.
  • It will encourage employees to use other more sustainable forms of transport to commute to and from work (such as public transport, cycling or walking), particularly if the employer passes a parking charge onto staff.
  • Staff who switch from solo car journeys to greener forms of transport will help reduce congestion and improve air quality.

What next?

I’ll be hosting a special Twitter Q&A on Tuesday 10 September with deputy city mayor Cllr Adam Clarke between 6 and 7pm, when we’ll be talking about WPLs and answering any questions you may have.

Over the coming months, we will be talking to business groups and other relevant organisations and interest groups to get their views on a WPL. We will also be seeking the views of residents in an open consultation in due course.

We will start work on a draft local transport plan that will identify future transport improvements for the city and potential funding sources (including Workplace Parking Levy).

We aim to carry out a formal consultation in 2021, looking at the Workplace Parking Levy, which areas it should cover, potential charging levels, exemptions and discounts, and improvements that could be funded.