Labour council slammed for slow Low Traffic Neighbourhood refund process after 'unlawful' verdict

Felix Reeves

By Felix Reeves


Published: 30/09/2025

- 09:13

A spokesperson for Lambeth Council said it was continuing to issue fines

Motorists who received penalties for driving through an illegal traffic restriction zone in south London have received minimal compensation months after a court ordered full reimbursement.

Lambeth Council has returned just £126,715 from a total of £1,465,875 collected through the West Dulwich low-traffic neighbourhood scheme.


The High Court declared the traffic restrictions unlawful in May, requiring the local authority to reimburse all penalties issued.

According to Freedom of Information data obtained by campaigners, merely 1,662 penalty notices have been refunded as of 26 September.

The council maintains it cannot process automatic reimbursements, stating that motorist information is removed from their systems after six months.

The judicial ruling emerged after residents and businesses successfully challenged the traffic scheme's implementation.

Judge Tim Smith determined that the local authority had disregarded "legitimate" objections from the community regarding potential traffic increases and deteriorating air quality.

The West Dulwich Action Group had conducted their own survey ,revealing 67 per cent opposition to the proposal.

Low Traffic Neighbourhood sign and a cyclist

Campaigners have expressed their frustration at the speed of refunds being issued

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PA/GETTY

They also submitted a comprehensive 53-page analysis that the judge described as "impressive" and "highly relevant".

However, the court found this document was excluded from the council's decision-making process.

Judge Smith characterised the authority's approach as a "masterclass in selective partial reporting" and identified this omission as a "serious failing" that rendered the traffic orders illegal.

The council has established a dedicated webpage where affected drivers can submit reimbursement requests, though this requires individuals to actively pursue their claims.

A Low Traffic Neighbourhood in LondonLow Traffic Neighbourhoods were popularised during the pandemic when there were fewer cars on the road | PA

Officials assert that routine data protection protocols result in the removal of driver records after a six-month period, preventing them from initiating refunds independently.

The £1.4million figure represents penalties accumulated since the scheme's introduction in September of the previous year.

With the judicial decision delivered in May, several months have elapsed during which the authority could have addressed the reimbursement process.

A council representative confirmed they are continuing to process refund applications and stated the claims system would remain accessible "for the foreseeable future".

Low traffic neighbourhoods

A spokesperson for Lambeth Council said it was continuing to issue fines

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GETTY

A representative for the West Dulwich Action Group expressed frustration, saying: "Other councils, including Southwark and Hackney, have accepted responsibility and refunded motorists when their fines were ruled unlawful. Lambeth's failure to do the same is unacceptable."

The group emphasised that drivers whose information remains on file should have already received their money.

They argued that prompt action following the court's decision would have enabled far more reimbursements by now.

"Instead, once again, we are forced to hold Lambeth to account. They repeatedly tell residents that schemes are imposed 'for our own good', but this handling of refunds shows quite the opposite," the spokesperson added.